The gap between acquisitions, mergers and actual sales

Business combination can be one of the most interesting topics in the context of an enterprise. Publicly, most mergers and acquisitions are negotiated by or between large companies. Sometimes they are executed at will, but sometimes you can hear that the values were destroyed by transactions.

Thus, there is a gap between strategic goals and actual implementation. Mergers and acquisitions are not a new phenomenon for medium-sized companies as an opportunity for external corporate growth. However, whether the success factor for small and medium-sized enterprises can be established even less due to less publicity than for large companies, without further research. To illustrate a typical element of medium-sized mergers and acquisitions, we look at the often-sounding statements of companies against the background of results and data. Are relevant topics for SMEs?

After the financial and economic crisis of 2008/2009 The market for mergers and acquisitions in was in decline both in the number of transactions and in volume. However, recent data show that mergers and acquisitions are not only relevant and relevant for SMEs. Rather, it will become a necessity in the future to compete in the global market. However, our study shows that SMEs tend to prefer acquisitions (so-called acquisitions) over mergers. The causes and consequences of this assessment can be found in the chapter. What is the experience of medium-sized companies? Unlike large corporations, which often have full-time departments or entire departments with mergers and acquisitions, transactions often represent an unusual, new and often unfamiliar situation for medium-sized companies. Transaction termination plays a special role here.

Unlike large companies, many SMEs are prepared to stop operations shortly before they close. The horizon of experience of medium-sized companies in the context of mergers and acquisitions is shown. What about the strategic integration of mergers and acquisitions? Are mergers and acquisitions planned strategically in advance, or are there special opportunities? Mergers and acquisitions are not included in corporate strategy in all companies, and the roles of the parties involved are very different. This and the goals pursued are the focus of the chapter. Is there an optimal merger and acquisition process for SMEs?

The institutionalization of mergers and acquisitions, comparable to large companies, usually does not exist in medium-sized companies. Structuring, formalization, organizational integration and the participants involved are very heterogeneous. Preparation, evaluation, coordination and integration – successful examples are given in the chapter. What added value do mergers and acquisitions provide? Usually aimed at high goals. But will they be achieved? Synergy speaks again and again: the golden rule. Is this even true? If so, is the pursuit of predetermined goals pursued during and after the transaction? How can one measure the contribution to success? Starting points are given in the chapter.

Applied definition and research methods. There are many different characteristics of the research object “SMEs”. Often, for example, in the media and politics, no distinction is made between small business and medium business. For example, in 2003, the European Union identified companies with a staff of 50 to 249 people and an annual turnover of up to 50 million euros as “medium-sized enterprises”. A large number of typically medium-sized companies in Germany with a significantly larger number of employees and higher annual sales will not be included. In terms of research and because of its relevance for applied research of small and medium-sized businesses, Deloitte defines proprietary and proprietary companies with a turnover of about 50 million euros and a workforce of up to 3,000 employees as medium-sized companies.

Interviews with experts. In order to apply the results of case studies to a critical review (triangulation) from the company’s practice, he conducted several hours of personal interviews with experts in total with eight experts from management consulting, science, banks, law firms and medium-sized business practices. The interviews were based on guidelines that combined open and closed questions.