M&A in the construction industry

The German construction and construction supply industry is facing a significant wave of consolidation, driven by sustainable developments such as the shortage of skilled workers, climate change and digitalisation. We at S&B Strategy therefore asked ourselves which sub-segments will be particularly affected by 2030, to what extent M&A is already being used today as a relevant vehicle to actively counter consolidation, and what the stumbling blocks of a successful M&A transaction are from the players' perspective.

In this study, we surveyed over 500 top decision-makers in the German construction industry on their usage behavior, challenges and areas for action in company sales and acquisitions and analysed their statements.

As a result, we assume that there will be significant consolidation, particularly in the finishing/ technical building services and building construction sectors, although on average M&A has so far been actively used by just one in five companies. Unclear responsibilities in the M&A process and insufficient synergy effects from the transaction are perceived by the companies as key challenges.

The massive succession issue in the German construction industry requires entrepreneurs to answer personal and company-specific questions honestly and early on in order to be able to hand over the company to a suitable successor in good time in a structured M&A process. Companies that want to actively drive consolidation need transparency regarding their medium to long-term strategic target positioning in order to be able to derive relevant M&A targets from this and thus lay the foundation for a value-creating transaction.