M&A market in turbulent times — property-based financing as a solid building block

The market situa­tion remains vola­tile, inclu­ding in the M&A sector. This entails many risks, but also offers oppor­tu­ni­ties. Studies show that stra­tegy, precise exami­na­tion of assets and tran­sac­tion finan­cing are curr­ently all the more important. Object-based models offer solu­ti­ons for the latter.

Even if 2024 is unli­kely to be a rosy time for compa­nies, the German economy is slowly emer­ging from the trough. Econo­mists at the Munich-based ifo Institute1 are fore­cas­ting a 1.5 percent increase in gross dome­stic product in 2023 follo­wing the reces­sion. The high infla­tion rate of previously 5.8 percent is also expec­ted to fall to 2.1 percent in 2024. The reco­very is ther­e­fore only taking place gradu­ally and chal­lenges and geopo­li­ti­cal uncer­tain­ties repre­sent a perma­nently simme­ring risk. Nevert­hel­ess, the deve­lo­p­ment is a posi­tive signal for the corpo­rate tran­sac­tion market. In any case, many play­ers in the M&A sector have proven to be resi­li­ent despite the reces­sion and multi­ple crises in recent months.

Deals contin­ued to play an important role despite the vola­tile times — espe­ci­ally for stra­te­gic inves­tors. Of course, the influence of the current crises could not be denied.