Volumes of mergers and acquisitions (M&A) in Germany have reached record levels, while the total number of M&A remained stable, the latest data presented by German think tank ZEW institute in collaboration with Bureau van Dijk revealed.
The average value of a transaction increased from €116m per deal in September 2013 to €303m as of June 2015, the average annual transaction value has tripled since 2000.
“The increase of transaction volumes can be explained by the re-entrance of big players into the M&A business” argues ZEW researcher Sven Heim. He highlights that while in the aftermath of the 2007 crisis, the M&A market was dominated by SME’s, multinationals are now back to business.
Nevertheless, the number of total M&A transactions remained stagnant. The report stated that because M&A tends to occur in waves, it remains unclear whether the current stagnation of transactions could be understood as a peak or just a transitional period leading up to another wave.