Abstract
Paper’s objective
Despite their critical role in the European economy, mergers and acquisitions (M&A) involving small- and medium-sized enterprises (SMEs) are less frequently analysed than those involving large corporations. The study’s objective is to address this gap by providing a deeper understanding of the motives behind M&A in the German SME sector.
Design/methods applied/approach used
This study employs an empirical approach, presenting unique insights from a survey of objective respondents who were M&A advisors for SME. The study was conducted in 2023 through computer-assisted web interviews.
Findings
SME buyers are primarily driven by the need for expansion, access to new consumers, and enhanced competitiveness. The main motives for selling SME include a lack of internal succession, the owners’ professional reorientation, internal conflicts, and a shortage of skilled workers. Perceptions of buyers’ and sellers’ motives regarding engaging in M&A remain consistent irrespective of the advisor’s M&A experience, experience with family firms, or involvement on the buyer side, except for growth and owners’ reorientation.
Originality/value
The study provides valuable empirical insights into the motives behind M&A, which are becoming increasingly frequent in the SME sector.