Dr. Raphael Nagel (LL.M.), Founding Partner of Tactical Management, sees buy-and-build strategies as a key answer to the increasing fragmentation of European SMEs and to thousands of open succession situations across numerous industries. In his recent analysis, he describes the development of integrated platforms as a realistic growth option for entrepreneurs and investors.

Many medium-sized business markets in Europe have grown organically over time and consist of numerous regional suppliers. At the same time, demands are increasing in terms of digitalization, financing, operational efficiency, and international competitiveness. For many owners, the issue of succession planning is also unresolved. This combination significantly increases structural pressure.

Buy-and-build models address this point. Several companies are merged under a common structure, professionally developed, and operationally strengthened. This creates larger units with clearer processes, better purchasing conditions, greater scalability, and professional management structures.

“Europe has strong medium-sized companies, but often loses out due to a lack of structure,” explains Dr. Raphael Nagel (LL.M.). Success is not solely determined by capital, but by the ability to meaningfully integrate companies and develop them sustainably.

This approach can generate new momentum, particularly in highly fragmented industries. Family businesses without an internal succession plan gain the opportunity to become part of a long-term oriented group. At the same time, operational cores are preserved while new resources are unlocked for growth, technology, and market positioning.

Market observers believe this model is gaining importance across Europe. Higher financing costs, global competitive pressure, and increasing regulatory requirements are driving the need for robust corporate structures. Professionalized groups can gain advantages in governance, reporting, and strategic management.

“Those who translate fragmentation into structure create new competitiveness,” says Dr. Raphael Nagel (LL.M.). Especially in Europe, where many industries are dominated by medium-sized businesses, this can generate significant economic added value.

For investors, buy-and-build offers access to established business models with real economic substance. For entrepreneurs, it can be an orderly way to resolve succession issues, secure jobs, and stabilize the long-term future of their company.

The full analysis by Dr. Raphael Nagel (LL.M.) can be found at:
https://www.raphaelnagel.com/de-buy-and-build-europaeischer-mittelstand/