Three key takeaways from M&A Excellence Days in Frankfurt

Where next for M&A in Germany? That was the question everyone was asking at the recent M&A Excellence Days conference in Frankfurt, organised by the German Bundesverband Mergers & Acquisitions.

I had the pleasure of attending with several Ideals colleagues and I was struck by the optimism, resilience and creativity I experienced in personal conversations and in compelling presentations.

Inevitably the topic of tariffs and economic headwinds were high on the agenda, along with AI, digitization, and financing. These are my key takeaways:

1. A new era of finance

The unprecedented increase in interest rates since 2022 has driven a lot of innovation in how M&A deals are financed. With capital more expensive and banks becoming more risk averse, we’re seeing funds and companies adopting new ways of thinking about deal structures.

In the technology space, debt funds are increasingly used to finance higher-risk deals while banks focus on more established technology firms. 

Whole loan structures and alternative financing instruments are also becoming more prominent due to the speed and flexibility on offer, which are a high priority for dealmakers given the increase in due diligence timelines in recent years.

2. Trade wars causing deal delays

The M&A Excellence Days conference took place shortly before President Trump’s ‘liberation day’ tariff announcement, so attendees weren’t aware of the full extent of what was to come. But it was clear that the uncertainty caused by US economic and foreign policy was already having an impact on deal activity.

While global deal value increased year-on-year in Q1, the number of deals completed fell to a 20-year low. Corporates and investment funds will inevitably look to derisk their activity until they have more clarity on the global economic situation, as it’s difficult to make long-term investment decisions when things are changing so rapidly.

Similarly, PE funds will be reassessing their exit plans in response to the impact of US tariffs on asset valuations, particularly in sectors such as life sciences and automotive.

The sense I got from attendees was that there’s a realization that Germany and the EU need to look beyond the US and strengthen relationships with different trading partners. In an article in Yahoo Finance, my colleague Sabine said that companies will need to adapt quickly to the new trading environment, possibly using M&A to “circumnavigate protectionist measures.” 

This could even spur some strategic investments and deals in the short term.

3. Dealmakers prioritizing efficiency

It’s clear that M&A is facing a challenging and uncertain period. In this environment, M&A professionals are even more focused on speed and efficiency.

At the conference there was a lot of discussion around the impact of AI on M&A processes, particularly on areas like deal sourcing or due diligence. We’re already seeing automation having a big role in summarizing documentation or analyzing data sets, and this will evolve at a rapid pace over the next couple of years.

Ideals data rooms already offer a number of AI-enabled features, such as AI-driven redaction, version tracking, document translation, and advanced search, enabling dealmakers to streamline workflows and improve decision-making.

Alongside more efficient processes, dealmakers are also looking at where they can trim costs and get a tighter grip on budgets. At Ideals, our focus on transparent pricing gives deal teams the clarity and predictability they need to better manage their transaction costs, which has been sorely lacking from legacy data room vendors.

For me, this focus on efficiency and transparency was one of the main takeaways from the M&A Excellence Days. In an increasingly uncertain market, dealmakers are looking for the right partners and technology to ensure deals get done with speed and confidence.

If you’d like to discuss any of the trends in more detail then please get in touch or connect with me on LinkedIn.