Significant slump in M&A transactions in the SME sector
Small and medium-sized enterprises (SMEs) in Germany are generally sought-after targets for mergers and acquisitions. However, current figures from KfW show that the coronavirus crisis put a damper on the SME M&A market in 2020. The number of M&A transactions targeting a German SME fell by around 45% compared to 2019.
Domestic investors and buyers in particular were increasingly cautious. In contrast, there was greater interest from foreign buyers, particularly from the USA and the UK. IT and information service providers proved to be particularly attractive target companies, accounting for 25% of all M&A deals.
Market figures for the current year point to a strong recovery, from which SMEs are also benefiting.
