Dr. Tim Bauer

A company’s realizable value is determined long before negotiations begin. Owners who can demonstrate the quality of earnings, cash conversion, growth potential, and risk profile early on lay the foundation for a robust valuation, an attractive pool of buyers, and a controlled sales process. Those who have to wait until they approach the market to make a case for the company’s value find themselves on the defensive during negotiations.

Succession, more expensive capital and more selective valuations are increasing the number of complex ownership situations in Germany's industrial Mittelstand. The advantage goes to those who select targets early, finance them through the downside, and create value after closing.

Especially in economically challenging times, M&A transactions offer a powerful opportunity for companies to drive strategic development. Whether a deal ultimately succeeds depends on a wide range of factors – and one of the most decisive is thorough preparation. In this best practices series, our M&A specialists Dr. Tim Bauer and Janina Buchholz explore the key prerequisites for a successful transaction.

What effect does the family factor have on change processes in family businesses? Our partner Dr. Tim Bauer researched this topic years ago. In 2012, he completed his PhD on "Innovation Processes in Family Businesses." Prior to that, he worked at the Chair for Family Businesses, advised young founders, and studied renowned family businesses from the German Mittelstand. That he now advises family businesses in transformation processes is partly because he himself comes from a family business and managed the company for a decade with his brother. How can family businesses respond to the current pressure to transform? What are their pain points? And what is essential in consulting for family businesses? Here are insights from his entrepreneurial and consulting practice.

The German Supply Chain Act and a European on top of that - the vote that was torpedoed by the FDP at the last minute. Was it helpful or not? Dr. Tim Bauer himself comes from a family of entrepreneurs. He believes that the EU Parliament lacks an eye for SMEs. "They unduly back the perspective of corporations and large companies." Although an important topic in terms of content, the extension of the Supply Chain Directive to small and medium-sized enterprises - as stipulated by the EU - is a burden for SMEs in Germany. But now, regardless of the political discord, regardless of the availability or lack of resources and the factor of time, the question remains: what decisions should companies make about their supply chains from now on and why? What could a quick check look like? A conversation with our new partner in Stuttgart.

With its “hidden champions,” the German Mittelstand is seen by investors worldwide as an attractive investment. But for owners and founders looking to resolve succession through a sale, the sales process holds a number of pitfalls and stumbling blocks. enomyc author and M&A expert Dr. Tim Bauer explains how to increase a company's value ahead of a sale — and what it takes to avoid a breakdown in negotiations.