Construction

Despite current challenges such as the weak economy, high energy and material costs, labour shortages and a rising number of insolvencies, construction remains one of Germany’s most important industries. These difficult market conditions have led to a decline in traditional M&A activity, apart from larger transactions involving companies facing insolvency or already undergoing insolvency proceedings.

One notable trend is the expansion of service portfolios into innovative areas such as modular construction, serial construction and the manufacture of prefabricated components. In this context, we advised a leading Polish prefabrication group on the acquisition of a construction components manufacturer in southern Germany. We also supported two market-leading construction companies with acquisitions in modular construction and public-sector commercial building projects.

Given the persistent housing shortage and the need to modernise public and commercial buildings, we expect the sector to see a sustained recovery. This is likely to lead to increased activity in the transaction market.