Oaklins Germany M&A Market Report - 1st Half of 2024

A detailed analysis of the M&A market with German counterparts

Surprisingly stable M&A activity in the first half of 2024 despite significant economic and geopolitical challenges

The first half of 2024 was characterized by surprisingly stable M&A activity involving German participation, despite economic and geopolitical challenges. The number of transactions increased slightly by +1.2% compared to the first half of 2023, underscoring the resilience of companies and investors.

As of June 26, 2024, Oaklins Germany has recorded a total of 1,485 completed or announced transactions involving German participation. Unfortunately, the stable M&A market is also supported by a nearly 30% increase in corporate insolvencies, reflecting the difficult macroeconomic conditions. The decline in inflation and the first interest rate cut by the ECB to 4.25% in a long time contributed to a positive environment for transactions.

The technology sector continued to lead the number of transactions, followed by the Industrials, Machinery & Components sector. Notable was the significant increase in M&A activities in the Consumer & Retail and Automotive sectors, while the number of transactions in the energy sector saw the largest decline.

For the second half of 2024, we expect a further slight increase in M&A activity, supported by a more stable economic environment and improved financing conditions. Existing uncertainties due to the upcoming US elections will be resolved by November, potentially strengthening investor confidence. At the same time, technological change through AI is gaining importance. Strategic and financial investors are increasingly investing in digital know-how and innovations. Additionally, a stabilization of geopolitical tensions could boost investor confidence and lead to an increase in cross-border transactions. The regional focus will remain on Europe and North America. Financial investors are under increased pressure to demonstrate exit performance as many fund durations near their end.

Read in our report also about the top 30 deals, the hottest sectors and the top countries where German companies have completed transactions outside their home country, and why financial investors are under increased pressure to demonstrate exit performance.

We wish you an exciting journey through our report and look forward to exchanging ideas with you.