In their chapter, Carsten and Peter analyze recent trends and developments in the German M&A market. They observe that the market in 2022 did not surpass the record-setting performance of 2021, particularly in terms of transaction volumes, but still exhibited significant activity over a longer period. Carsten and Peter describe how the severe geopolitical and macroeconomic shifts impacted M&A deal terms and processes in Germany in various ways, as buyers and sellers were confronted with high uncertainty and new financing constraints. Their chapter also discusses broader trends such as transatlantic M&A, transformational transactions and private equity developments.
For their outlook on 2023, Carsten and Peter recognize subtle signs of interest in M&A transactions due to some economic stabilization in the first months of the year. However, they observe that M&A buyers and sellers remain cautious and hesitant as inflation and interest rates remain high and global geopolitical tensions persist. Generally, they see robust buy-side potential as a result of the funds available to private equity investors and corporates and note a significant number of discussions with German companies demonstrating interest and a need for strategic positioning through M&A. Therefore, Carsten and Peter conclude that the German M&A market could rebound quickly when the economic environment continues to stabilize and access to debt is restored.
Frank Aquila, S&C’s Senior M&A Partner, is a Contributing Editor of the Chambers Corporate M&A Guide.
Read the full chapter here.