Basics of M&A transactions in Germany

Germany is the largest economy in Europe and considered the world's leading exporter of merchandise, with exports accounting for more than one-third of the national output. The economy in Germany is subject to a legal framework that is more efficient, cost-effective and predictable than commonly reported, with statutory law (instead of case law) providing legal certainty. The World Economic Forum's Global Competitiveness Report 2008-2009 even showed Germany to be top-ranked in the category of 'efficiency of legal framework'.

Compared to Anglo-Saxon countries, M&A activities in Germany may not have reached their peak and have obviously suffered from the financial crisis in 2008 and 2009. However, since the end of 2009, the M&A market begins to show signs that it will probably increase again.

This article shall provide a brief general overview of M&A transactions in Germany from a legal perspective.