Chemicals

The chemical industry is a central pillar of German economic performance. As an important supplier to a large number of other sectors of the economy, the chemical industry makes an important contribution to employment and growth in Germany. In addition, innovative products and processes from the chemical industry make a significant contribution to solving global challenges, such as ensuring health, nutrition, climate protection and mobility. The German chemical and pharmaceutical industry also occupies a leading position in Europe and at global level. BASF, Bayer, Fresenius, Henkel and Linde are just a few examples of the chemical groups listed in the German Stock Index as Germany's highest-turnover companies. However, the listing of these well-known names should not hide the fact that almost 90% of the companies in the chemical industry are small and medium-sized enterprises (SMEs) with fewer than 500 employees. Large chemical companies often only supply preliminary products, which SMEs then process into end products. Accordingly, a large proportion of the products do not go to the end consumer, but are recycled directly by the industry.

The chemical industry is traditionally characterised by a broad product diversity and thus provides numerous starting points for cooperation and acquisitions. The portfolio of the SMEs includes very different products such as varnishes, paints, chemical fibres, fertilisers, furniture and shoe polishes as well as medicines, cosmetics or detergents and cleaning agents. In order to be able to survive in the global market with a correspondingly large number of competitors, however, the companies must grow in order to realise economies of scale in production and logistics as well as research and development (R&D). In particular, the intensity of research and the associated high costs mean that the chemical industry traditionally has a high capital requirement. Since chemical products are used in all areas of life and a large proportion of customers are from abroad, this sector is very interesting for both domestic and foreign investors. In addition to innovative products and processes, human capital in particular is a valuable asset, as many of the employees in the chemical industry are highly educated and have a high level of application know-how. The result of this starting position is a large number of mergers and acquisitions, leading to a progressive consolidation of the global chemical market.

As a corporate finance expert specialising in medium-sized companies, CF-MB can help you to realise your expansion ambitions or to sell your company or individual divisions. Use our international network and our extensive investment banking experience to successfully implement your planned transaction. Please contact us and arrange an appointment.

Our services at a glance:

• Identification of potential acquisition candidates to implement your expansion plans, to extend your product range or to strengthen your competitiveness
• Full support for the sale of your company or a partial sale of individual divisions to domestic and foreign investors
• Consulting services regarding your company succession or other restructuring within your company
• Full range of consulting services for company acquisitions, company mergers and company sales