Question 1

What does M&A mean and why is it important for medium-sized companies?

Accepted Answer

M&A refers to company acquisitions, sales or mergers in which ownership structures are changed – a strategic way to achieve growth, market share expansion or succession solutions.

Question 2

What are some typical M&A transactions in the SME sector?

Accepted Answer

This includes share deals, asset deals, management buyouts/buy-ins and strategic minority investments.

Question 3

How does an M&A process generally proceed in medium-sized businesses?

Accepted Answer

An M&A process includes strategy, preparation (M&A readiness), target selection, due diligence, contract negotiation, closing and integration.

Question 4

What is M&A readiness and why is it crucial?

Accepted Answer

M&A readiness describes how well a company is prepared legally, financially, and organizationally for a deal. Good preparation increases the chances of a successful transaction.

Question 5

What risks should I, as a medium-sized business owner, be aware of in the M&A process?

Accepted Answer

Typical risks include incorrect company valuation, legal or tax pitfalls, lack of integration, or unknown liabilities.

Question 6

What is the difference between a share deal and an asset deal?

Accepted Answer

In a share deal, company shares are transferred, while in an asset deal only selected assets and liabilities are transferred.

Question 7

How do you prepare a legally sound due diligence?

Accepted Answer

Due diligence should cover all relevant legal, tax, financial and operational areas in order to identify risks early on.

Question 8

What is the significance of business valuation in medium-sized companies?

Accepted Answer

The valuation determines the economic value of the company and is crucial for purchase price negotiations and fair deal structures.

Question 9

What are earn-out clauses and when are they used?

Accepted Answer

Earn-out clauses link parts of the purchase price to future performance by the company or management – often in situations of uncertain forecasting.

Question 10

What are the special features of international M&A transactions?

Accepted Answer

International deals involve additional legal, tax and regulatory aspects that go beyond the national level.

Question 11

How does merger control affect transactions involving medium-sized companies?

Accepted Answer

Depending on certain size criteria, transactions must be reported to and approved by national or EU competition authorities.

Question 12

What role does integration play after closing?

Accepted Answer

Integration is crucial to realizing synergies, adapting organizational processes, and combining cultural aspects of companies.

Question 13

How do I find potential buyers or investors for my company?

Accepted Answer

Strategic buyers, financial investors (e.g., private equity) or management teams can be identified through networks, investment banks and specialized consultants.

Question 14

What does M&A consulting typically cost for deals involving medium-sized companies?

Accepted Answer

Costs vary considerably depending on complexity and scope of services – from project-based fees to success fees. An individual cost estimate is part of the initial consultation.

Question 15

Why is legal support advisable in the M&A process?

Accepted Answer

Legal expertise protects against risks, ensures fair contract terms and navigates safely through regulatory requirements.

Question 16

How long does a typical M&A process take in medium-sized businesses?

Accepted Answer

Transactions involving medium-sized companies can take from a few months to over a year, depending on the scope, complexity, and due diligence.

Question 17

What strategic goals can a medium-sized company achieve through M&A?

Accepted Answer

Objectives include, for example, market expansion, strengthening the product portfolio, or succession planning.

Question 18

How can I, as a seller, improve my negotiating position?

Accepted Answer

Through solid preparation, clear financial and legal data, transparent communication and professional advice.

Question 19

What role do tax aspects play in M&A?

Accepted Answer

Tax structuring can significantly influence purchase price design, liability and future company profits and should be planned early.

Question 20

How do I handle confidential information during a transaction?

Accepted Answer

Confidentiality is ensured through NDA agreements and secure data rooms to exchange sensitive data in a protected manner.

Question 21

What is succession M&A and when is it more sensible than succession within the family?

Accepted Answer

Succession M&A refers to the sale of a company to external buyers (e.g., strategists, private equity firms, or management) when no suitable family or internal succession is available or economically viable.

Question 22

When should I start planning for a business succession through sale?

Accepted Answer

Ideally, this should be done 3-5 years before the planned exit to optimize legal, tax and organizational issues early on and increase the company's value.

Question 23

Which buyers are typically considered in a successor transaction?

Accepted Answer

These are often strategic competitors, financial investors (private equity), family offices, or the existing management as part of a management buyout (MBO).

Question 24

How does a succession M&A differ from a traditional company sale?

Accepted Answer

In succession M&A transactions, the focus is often on continuity, employee retention, corporate culture and the role of the previous owner after the sale, in addition to the purchase price.

Question 25

What role does the entrepreneur play in the subsequent M&A after the sale?

Accepted Answer

Often, the seller remains on board temporarily as managing director, consultant, or minority shareholder to ensure knowledge transfer and stability.

Question 26

How can I ensure that my life's work is continued?

Accepted Answer

Through targeted buyer selection, contractual agreements (e.g., location, employee or brand commitments) and a coordinated transition phase.

Question 27

What are the special tax considerations for succession transactions?

Accepted Answer

Tax issues such as tax allowances, partial income procedures, holding structures or reinvestments should be examined and structured early on.

Question 28

How does succession M&A affect employees and management?

Accepted Answer

Transparent communication, incentive models and clear future prospects are crucial to retaining key personnel and avoiding uncertainty.

Question 29

What happens if the entrepreneur becomes incapacitated or dies at short notice?

Accepted Answer

Without a prepared succession structure, significant risks arise. Early succession and contingency planning is essential to ensure the ability to act.

Question 30

How does a specialized M&A consultancy support business succession?

Accepted Answer

It coordinates legal, tax and strategic aspects, structures the process, protects the seller from liability risks and maximizes planning security and results.

Mergers & Acquisitions – structured, pragmatic, secure