In 2024, there was a significant decrease in the number of mergers and acquisitions involving Swiss SMEs. This decline is in contrast with the global trend. Here is an analysis from the experts at AURIS Finance, an M&A consultancy.
According to data released by the consultancy Deloitte, there was a significant decrease in M&A transactions involving Swiss SMEs in 2024. The year-on-year decline was 9%. The drop was even greater at national level. In Switzerland, purely domestic transactions fell drastically, by more than a quarter (28%) on the previous year. The downturn was widespread, impacting all sectors. This is in contrast to the situation in other European countries, where M&A activity has also slowed, but the decline remains contained. After a subdued year in 2023, the global M&A market demonstrated a modest recovery in 2024, with the total value of transactions reaching US$3.6 billion, marking a 13% increase compared to the previous year, as reported in the Global M&A Report 2025 by Bain & Company.
Focusing on international markets
However, this Swiss downturn does not necessarily indicate poor economic health. A decline in transactions between domestic players is primarily attributed to Swiss companies focusing their efforts on international markets. According to the Deloitte study, in 2024, 82% of transactions involving a Swiss company were with a European company. This strategy has enabled Swiss companies to access new markets and diversify their activities. The resilience of the Swiss economy and the strength of the Swiss franc against the euro have prompted Swiss SMEs to focus on more accessible markets. The study also found that major trading partners geographically closest to Switzerland – Germany and France – are losing ground to more distant and smaller markets, but with faster growth and generally lower costs, such as Poland and Spain.
Swiss tech on the back burner
At the same time, Swiss companies continue to be attractive to European investors, who accounted for three quarters of buyers in 2024. Germany, France and the UK accounted for 70% of purchases made during the year. In 2024, there was a noticeable shift in the sectoral composition of acquisitions, with IT companies and software publishers seeing a 14% decrease in the number of deals. Conversely, acquisitions of industrial SMEs by foreign investors increased by 20%. Two other sectors demonstrated particular dynamism, with transactions involving SMEs specialising in business services and healthcare rising by 16% and 15% respectively over the year.
Our experts at your service
The outlook for 2025 is cautiously optimistic, with a favourable interest rate environment. When it comes to M&As involving international companies, thorough upstream preparation is paramount. AURIS Finance’s team of experts is at your service, whether you are contemplating an acquisition or a sale. With specialisms in various sectors, our experts will provide comprehensive support throughout the entire process.
