News

Especially small and medium-sized enterprises (SMEs) are often the driving force behind economic growth, innovation, and employment.

However, in today's globalized business world, SMEs face ever greater challenges.

The biggest of these is undoubtedly the speed at which the world is changing!

Perhaps the last chance to meet these challenges and secure long-term growth lies in mergers and cooperation between SMEs. In this article, I will take a closer look at the necessity of mergers among small and medium-sized enterprises.

1. Market changes and competitive pressure:

The business world is changing continuously and rapidly, and SMEs are facing increasing competitive pressure. Larger companies and international corporations typically have the resources and capacity to cope better with market changes. Mergers can enable SMEs to join forces to remain competitive.

2. Economies of scale:

Mergers enable SMEs to achieve economies of scale that would not be available to them on their own. This means that they can make their production, sales, and purchasing activities more efficient. This can lead to cost savings and increased competitiveness.

3. Access to new markets:

A merger can give SMEs access to new markets. This can be particularly advantageous in international markets, where local knowledge and resources are crucial. Collaborating with a partner company can facilitate market entry.

4. Diversification of the portfolio:

Mergers enable SMEs to diversify their business portfolio. This reduces dependence on individual markets or products and can lower the risk of economic fluctuations.

5. Technological progress:

Technological advances are crucial in many industries. Mergers can give SMEs access to new technologies and capabilities that they would not be able to develop on their own. This can help to increase their innovative strength.

6. Strengthening the negotiating position:

Larger companies often have a stronger negotiating position with suppliers and customers. Merged SMEs can use this position to negotiate better terms and improve their profitability.

My strategy recommendation to all SMEs:

The need for mergers among small and medium-sized enterprises (SMEs) is more apparent than ever in today's business world. The challenges of global competition, the need for innovation and technological progress, and access to new markets typically require strategic cooperation.

Through mergers, SMEs can pool their resources, increase their competitiveness, and secure long-term growth. However, it is important to note that mergers should be carefully planned and implemented to achieve the best possible results and protect the interests of all parties involved.

Your experienced SME strategy and M&A consultant

Dipl.-Wirtsch. Ing. (FH) Rolf Popp

Contact us.

Tel. 0049.931.70528570
rolf.popp@pro-consult.com