Taking an Active M&A Role in the Consolidation of the Engineering Sector

Chapter

Abstract

The professional services sector has become one of the most vibrant industries in Germany. In particular, knowledge-driven services such as technical services or IT services have had a strong impact on the German economy as they contribute around 30% to the German gross value added. The highly qualified German service professionals are widely renowned and their services are increasingly exported into international markets. As in many other regions, the German market is highly fragmented. The average size of companies varies considerably but is generally small. Market consolidation, already taken place in many other regions outside Germany, has now started as German market players without critical mass are struggling for profitability or want to broaden their skills spectrum and capabilities in foreign regions. On the other hand, multinational market players are trying to expand their businesses into Germany to offer one-stop capabilities on a global basis and to benefit from ongoing growth in one of the most important markets in the world. During the past few years, M&A transactions in the German engineering services industry have played an important role in European mergers and acquisitions. The conditions for external growth in Germany are expected to remain favourable and acquisitions are currently a strategic option despite all uncertainties concerning the way the global economy will develop in the future.

Keywords

Engineering Service Market Player Service Portfolio Sole Proprietorship Short Product Life Cycle 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.SSC ConsultBremenGermany

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