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Today’s Rundown:

• Spain leads search fund market

• Search funds rise in Germany

• M&A activity in Germany is back to normal

• Business trends to watch in 2025

• 7 deal announcements

• 14 career opportunities

Buy & Build Europe: +300 Search Fund Investor / Angels database 

Weekly Highlights

• Sébastien Chartier, founder of Spanish Search Fund News, published that Spain leads the search fund market outside of the US:

  • Spain counts over 50 acquisitions in the past decade, with final 2024 figures expected to rise

  • Spain maintains one of the lowest search fund failure rates despite recent challenges, highlighting its strong market resilience

  • Over 50 search funds are actively pursuing acquisitions, making Spain one of the world's most competitive markets

  • Investor interest remains high, with more than 10 search funds currently fundraising, demonstrating the growing appeal of the ETA model

  • Spain’s SME-driven economy and strong investor network support 15-20 acquisitions per year, ensuring long-term growth

• Benedikt von Hatzfeldt, founder of search fund Tembo Search Partners, shared his view on why search funds and ETA is becoming significantly more popular in Germany:

  • Search funds provide a structured solution to Germany’s Mittelstand succession challenges, ensuring business continuity as many owners near retirement without successors

  • Increasing backing from private equity firms, banks, and institutions is making the ETA model a more attractive and feasible option for aspiring entrepreneurs

  • Studies indicate strong returns from search funds, with rising interest in sectors such as technology, logistics, and healthcare, positioning Germany as a promising market

  • ETA is drawing a new generation of highly educated professionals, particularly MBA graduates, eager to lead businesses and drive growth

• PwC shared their German M&A 2024 study:

  • A total of 1,191 deals with foreign M&A investors were signed in 2024

  • 46.7% of the deals involved foreign private equity (PE) investors, marking the highest level since 2020

  • 27.4% of all M&A transactions took place in the technology sector

  • Total value of M&A deals accounts to ~€104 billion, representing a 48% increase compared to 2023

• The Economist shared their 10 business trends for 2025, and forecasts for 15 industries:

  • IT spending is projected to increase by 8%, reaching $3.6 trillion, as companies continue to leverage artificial intelligence

    • ~30% of large American companies are investing $10 million or more in AI, up from 16% in 2024

    • Gartner forecasts that 30% of generative AI projects will fail to progress beyond the proof-of-concept stage due to high costs and uncertain returns

  • Shippers must also address sustainability challenges, with 40% of their emissions now covered under the EU's emissions-trading system

  • Lower inflation is encouraging central banks to implement further interest rate cuts, boosting consumer spending

  • Defense budgets are set to rise

    • The US, the world's largest defense spender, plans a 4% increase, bringing its military budget to $884 billion

    • China, the second-largest spender, is expected to accelerate its defense investments at a faster rate

    • NATO will consider raising its national defense spending target to 2.5% of GDP, though one in three members have yet to meet the current 2% goal

  • Health-care systems will face significant strain in 2025 as aging populations and workforce shortages persist

    • Nearly 12% of the global population will be aged 65 or older, while health-care spending is expected to account for just 10% of global GDP, down from 11% during the COVID-19 pandemic, with total global expenditures reaching $11 trillion, nearly half of which will be in the US

Deal Announcements

• Monika Wincel launched Cedo Capital, an industry-agnostic search fund (link)

• KKA Partners acquired BLACKROLL, a global leader in health and recovery products (link)

• Everfield, an acquirer of vertical market and specialist software companies, acquired ondeso, an operational technology administration software provider (link)

• Volaris Group, a buy-and-hold acquirer of software businesses and part of Constellation Sofware, acquired agentOS Proptech Group, a provider of property management software solutions (link)

• GENUI and SHS Capital acquire ROTOP, a leading manufacturer and CDMO of radiopharmaceuticals (link)

• Zellis Group, a Apax backed providers of payroll and HR software solutions, acquired elementsuite, an AI enabled HR software company (link)

• teccle group, a FMC backed IT service provider, acquired Brunner & Schmidt, a IT solutions provider specializing in DATEV services (link)

Career Opportunities

• [PE-Asset] Corporate Strategy and M&A Lead | Spryker | Berlin (apply)

• [PE-Asset] Manager M&A / PMI | House of Experts | Munich (apply)

• [PE Asset] M&A Manager | PER | Hamburg/Munich (apply)

• [PE Asset] M&A Manager | Sweco | Frankfurt (apply)

• [PE Asset] M&A Associate | PER | Dusseldorf (apply)

• [PE] (Senior) Investment Manager | Fidelium | Munich (apply)

• [PE] Investment Manager | IT Capital Partners | Hamburg (apply)

• [PE] M&A / Origination Manager | Tim Wagner Personalberatung | Hamburg (apply)

• [PE] Operations Manager | IT Capital Partners | Hamburg (apply)

• [PE] Investment Associate | COI Partners | Frankfurt (apply)

• [PE] Investment Associate | Mill Reef Capital | Zurich (apply)

• [PE] Investment Associate | GENUI | Zurich (apply)

• [PE] Investment Analyst | Tim Wagner Personalberatung | Hamburg (apply)

• [PE] Intern | Partners Group | Munich (apply)

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