In this breakfast workshop, women in M&A will share their experience of deal dynamics and the positive outcomes of diverse M&A counsel teams and how this can be harnessed for better deal outcomes.

At a pivotal moment in German politics with a new government in place, the question is how political and economic upheaval will transform the M&A environment. While Germany's key industries face mounting pressures and deal completion rates have slowed, emerging opportunities in supply chain optimisation and strategic synergies are fostering cautious optimism among dealmakers. The interview will cover:

• Will the incoming government's fiscal and monetary policies address the deep-rooted economic challenges?
• Can reforms to Germany's industrial framework reshape cross-border transactions?
• Will digital transformation and green energy drive deal flow?
• What impact will changes to the regulatory landscape have on dealmaker confidence?

Despite economic conditions in Germany being challenging and uncertain, many businesses are still keen to do deals – by the end of November 2024, M&A activity in the DACH region was up by 3% year-on-year at EUR 113.7bn in the year-to-date period according to Mergermarket data. Private equity funds continue to see the country as fertile hunting ground for transactions and there is hope that ECM activity will pick up in 2025. The year could also see international sovereign wealth funds join the list of buyers. Setting the scene for the day, the panel will cover: 

• Will lower interest rates, lower inflation, pent up deal flow and dry power act as deal drivers?
• How will the cost of capital, geopolitical uncertainty and the early days of new governments impact confidence? 
• What role will private equity and international sovereign wealth funds play in German dealmaking?
• How are deals being financed, is there a role for private financing options in Germany?

As the cornerstone of Germany’s economy, the automotive sector faces unprecedented challenges amid global market share erosion and intensifying competition from Chinese EV manufacturers. While traditional OEMs grapple with technological transformation and shifting consumer demands, the landscape presents compelling opportunities for strategic partnerships, joint ventures and cross-border acquisitions. According to Mergermarket data, automotive deals in the DACH region are booming with the number of deals announced in 2024 being the highest on record since 2017. With Chinese bidders potentially eyeing German assets as a tariff mitigation strategy and distressed opportunities emerging, this session explores how M&A could reshape the industry's future. The panel will cover:

• How can M&A help address the structural disruptions that have led to the problems in the automotive industry?

• In what ways is the convergence of automotive and technology reshaping M&A strategy?

• Why are joint ventures emerging as a strategy for innovation and cost-sharing? 

• How will regulatory hurdles like Foreign Subsidies Regulation and FDI reviews impact deal structures and timelines?

Pressure on German companies is high - shareholders are demanding they focus on core competencies and shed non-core asset, they have to fund growth initiatives and refinancing existing debt. With Germany is still home to many conglomerate structures, it is no surprise that expectations mount for further carve-out processes. The automotive and the wider industrials spaces are prime locations for activity with a few processes under way, but M&A activity could take place in other sectors too. The panel will cover:

• Is it only industry-specific factors driving carve-out processes or are wider themes at play? 

• How do management teams approach portfolio reviews and assessment frameworks when evaluating potential carve-outs? 

• What role do synergy assessments and standalone viability analyses play in these decisions? 

• What unique advantages do different buyers bring to carve-out transactions?

Technology, innovation and the use of AI are widely considered to be key components in the growth strategy of Germany businesses. We are seeing a growing focus on data analytics and AI in daily operations and many businesses are doing deals, specifically to gain these capabilities, with Siemens’s acquisition of Altair Engineering being an excellent example. The Hengeler Mueller sponsored panel will cover: 

• How are businesses embracing technology to strengthen operations?

• How is the focus on technology and innovation manifesting itself in deal flow?

• When will we see Germany businesses buying German tech players, instead of looking toward US targets to plug technological gaps? 

• Reviewing the regulatory landscape, how can the stumbles blocks to growth in the space be overcome?

The German Mittelstand is at a point of evolution. In a recent report carried out by Mergermarket, 56% of industry stakeholders view increased M&A activity in the sector positively. These family-owned businesses are increasingly open to new growth strategies as they navigate generational transitions, technological disruption and global competition. The fireside chat will cover:

• How has the Mittelstand been affected by increased inbound M&A activity, particularly from Chinese investors since 2010?

• How will digitalisation pressure influence the businesses to consider M&A as a strategy? 

• What role will external capital play in funding the Mittelstand's future growth? 

• Looking ahead, how will the next generation of leaders address challenges of modernisation while maintaining their companies' core values?

Going behind the scenes of a recent IPO in Germany, the audience will be given an insight into the process behind the listing.

Difficult economic conditions in Germany are giving rise to expectations of more insolvencies and distressed driven M&A. According to data cited on Mergermarket, in the automotive space alone insolvencies have risen significantly – on a 2024 YTD Q3 basis, there have been 35 insolvency filings from companies with a turnover over EUR 10m. In the past Chinese buyers have acted as saviours of distressed German assets, but with the regulatory environment very different now, questions loom over who will buy these businesses. The fireside chat will cover: 

• Which sectors will see M&A arising from businesses in distress? 

• Who will buy them and why?

• What are the challenges in buying distressed assets and working on turn-around situations? 

• What role do speed and certainty of execution play in winning distressed deals?

The German private equity landscape is undergoing transformation, with family offices increasingly stepping into roles traditionally held by PE funds. This shift comes at a time when Germany continues to navigate its complex relationship with private equity, convincing aging business owners to partner with financial buyer. According to PwC, PE firms struggled to find exits in 2024 and are holding record dry powder but there is huge optimism that 2025 will prove to be a bumper year for German PE dealmaking. The panel will cover:

• Can we make a case for specialised PE funds versus generalists? 

• How is the ESG agenda shaping private equity funds investment theses? 

• Are family offices building direct relationships with PE houses versus working through traditional private banking channels?

• When will the public market in Germany become a serious route?

Against the backdrop of Germany's economic headwinds and shifting debt markets, this panel explores how dealmakers are adapting their financing strategies in 2025. With syndicated loan and high yield bond markets showing early signs of recovery and alternative financing sources gaining prominence, understanding the full spectrum of options is crucial. The panel will cover: 

• What themes are currently dominating the financing landscape? 

• Winners and losers - what are the key challenges to securing financing and who is about to secure funding? 

• What factors do borrowers need to consider when securing financing?

• With a weakening German banking sector, are we seeing private lenders stepping into the breach?