The aim of this thesis is to examine the transaction environment for medium-sized German companies and to question the motives and obstacles for transactions at medium-sized companies. Derived from this, the reader is to be shown the special features of medium-sized merger and acquisition transactions. In the first part of the thesis, a theoretical basis is formed, which first presents the standard process of such a transaction to the reader.
Digitization and globalization are increasingly forcing German SMEs to compete with foreign companies. New large growth markets outside Germany require an adjustment of the internationalization strategy. To remain competitive, companies must expand existing networks and merge into new networks. Specialize and, if necessary, reduce offers. Increase cost efficiency, optimize and modernize processes and expand production capacities. Furthermore, expand and consolidate the international presence.
One opportunity to implement these strategies is the implementation of Mergers & Acquisitions. This term is used to describe a merger or fusion of two companies to form a legal and economic unit or the acquisition of company units or an entire company. "M&A stands for all transactions in connection with the transfer and encumbrance of property rights in companies, including the formation of groups of companies, the restructuring of groups of companies, mergers and transformations in the legal sense, squeeze-outs, the financing of the acquisition of companies, the formation of joint ventures and the takeover of companies."
M&A transactions can be achieved through economies of scale and economies of scope by in-creasing activity within the company. In addition, new internal success potentials can be developed and core capabilities can be better utilized. Furthermore, the scope for pricing and negotiation can be increased, thus enhancing market power.
Table of contents
1 Introduction
2 Research questions and reflection
2.1 The aim of the work
2.2 Structure and methodology
2.3 Basics of Mergers & Acquisitions
3 M&A in medium-sized companies
3.1 M&A Consulting
3.2 Financial services in M&A
4 M&A requirements of medium-sized companies
5 Summary and outlook
Objectives and Topics
This assignment examines the specific requirements and environmental factors influencing Mergers & Acquisitions (M&A) transactions within German medium-sized companies. It investigates the primary motives, strategic obstacles, and the critical role of external advisory services and financing structures in ensuring successful M&A outcomes for small and medium-sized enterprises (SMEs).
- The transaction environment for German medium-sized companies
- Motives and success factors for M&A in the SME sector
- The role of M&A consulting in the strategic and transaction phase
- Financial requirements and the importance of bank financing
- Analysis of M&A success rates and risk management
Excerpt from the Book
2.3 Basics of Mergers & Acquisitions
An analysis of the historical data on the transaction volume per annum shows that the market for mergers and acquisitions is subject to volatility. These fluctuations in transaction volume, which have been considered in some cases in the history of the market and which have been almost wavelike, are known in the literature as the so-called M&A waves. These waves, which appear to be cyclically repeated, lead to an increase and stagnation of transaction volumes in the global mergers & acquisitions market at regularly recurring intervals. It is striking that the emergence of the individual waves is usually accompanied by economic changes, political decisions or technical innovations.
Figure 1 shows the cyclical course of M&A waves considering statistical data. The chart clearly shows the wave-like movement of volumes. Especially in the periods 1995 to 2001, 2003 to 2009 and 2013 to 2016.
From the buyer's perspective, M&A transactions are broken down into at least two and up to over ten steps. The subdivision into three phases, a preliminary phase, a transaction phase, and a post-merger/integration phase has become established.
Summary of Chapters
1 Introduction: Discusses the impact of digitization and globalization on German SMEs and introduces M&A as a strategic tool for growth and competitiveness.
2 Research questions and reflection: Defines the aim of the thesis, outlines the qualitative research methodology, and covers the fundamental concepts of M&A waves and transaction phases.
3 M&A in medium-sized companies: Analyzes the M&A market focus on SMEs, including motives for sellers and buyers, as well as the significant role of specialized consulting services.
4 M&A requirements of medium-sized companies: Synthesizes the results to highlight the critical need for external advisory support and the conservative, risk-averse nature of financing in the SME sector.
5 Summary and outlook: Concludes that M&A is an indispensable strategic process for SMEs and predicts a growing importance for external advisory and financial services.
Keywords
Mergers & Acquisitions, M&A, German SMEs, Medium-sized companies, Transaction environment, Strategic planning, M&A Consulting, Due Diligence, Corporate Finance, Post-Merger Integration, PMI, Market growth, Business valuation, Bank financing, Globalization
Frequently Asked Questions
What is the core subject of this assignment?
The work focuses on the transaction environment, requirements, and motives for Mergers & Acquisitions specifically within the German medium-sized company sector.
What are the central thematic areas covered?
The key themes include strategic M&A planning, the role of external consultants, the phases of a transaction, and the financial structures preferred by SMEs.
What is the primary objective of this research?
The goal is to analyze why M&A transactions are critical for SMEs and to identify the specific requirements for management consultants and financiers in these processes.
Which scientific methodology is applied?
The author uses a qualitative investigation approach, which involves a comprehensive literature review and an evaluation of data from current studies and expert sources.
What aspects are addressed in the main body?
The main body examines the cyclical nature of M&A, the three-phase transaction model, the specific challenges SMEs face, and the reliance on external advisory and debt financing.
Which keywords define this work?
Core keywords include Mergers & Acquisitions, SMEs, M&A Consulting, Due Diligence, Post-Merger Integration, and Corporate Finance.
Why is the "preliminary phase" highlighted as significant?
It is essential because comprehensive strategic planning during this phase impacts the success of all subsequent transaction steps, including SWOT analysis and target selection.
What is the role of debt financing in SME transactions?
Debt financing is crucial, with 40% of financing sources being debt capital, largely provided through bank loans and credit lines, reflecting a conservative financial approach.
How does the author characterize the role of consultants?
Consultants are described as indispensable, providing the "know-how" and professional networks that internal SME management often lacks for complex M&A projects.
What does the "ITM-Checklist" contribute to the discussion?
The checklist provides a structured overview of subject areas—such as Economics, HR, and Corporate Finance—that must be evaluated to ensure a successful M&A process.
- Arbeit zitieren
- Felix-Sebastian Ament (Autor:in), 2020, Mergers and Acquisitions in Germany. What Are the Specific Requirements For German Medium-Sized Companies?, München, GRIN Verlag, https://www.grin.com/document/916287
