We are pleased to present the latest edition of our review of M&A activity (sales and acquisitions) of small and medium-sized enterprises (SMEs) in Switzerland, covering the year 2024. This year’s report includes an interview with Olivier Annaheim, Chief Executive Officer, at Condecta AG, who shares details on their recent acquisition by Swiss Life Asset Managers (SLAM).

Globally, M&A activity increased slightly in 2024, although there was a marked slowdown in the number of deals towards the end of the year. This slowdown is also reflected in M&A activity of Swiss SMEs which declined by 8.7% compared to the previous year.

The decline in the number of transactions in Switzerland is attributable to a substantial fall in the number of domestic transactions, which decreased by 28.4% compared to 2023, while cross-border M&A transactions remained more stable.

The Swiss economy has remained resilient, making it an attractive market for growth via M&A. As a result, inbound transactions, which had been on a downward trend since mid-2022, increased by 5.0% in 2024. Outbound transactions, which had increased in number since 2021, declined by 1.4% in 2024.

Impact of the global economy

Subdued activity over the year of 2024

With interest rate cuts and reduced inflationary pressures, the number and value of M&A deals globally increased slightly in 2024. The same trend was not observed for M&A transactions involving Swiss SMEs, which decreased to 179 in 2024 from 196 the year before. The drop in the number of domestic transactions (-28.4%) accounted for most of this decline.

Transactions in Switzerland

(Domestic and inbound M&A transactions, excluding outbound deals)

Deal volume in Switzerland involving SMEs (111 divestments) fell by 13% compared to 2023, driven mainly by a fall in domestic deals.

Economic environment in Switzerland

Disparity in expectations

According to the most recent Deloitte CFO Survey, Swiss CFOs have an optimistic outlook for Switzerland. However, falling expectations for discretionary spending and investments indicate that companies are taking an increasingly cautious approach. The main concerns are geopolitical risk, the impact of the change in US presidency, and to a lesser extent, weak demand and labour shortages.

The increasing caution of companies is reflected in the responses which highlighted the growing importance of efficiency and cost measures, with the focus on optimising business structure and implementing technological solutions.

2025 outlook

The M&A market globally has exhibited signs of recovery since the beginning of 2024. Deals have flourished in North America (14,385 deals in 2024 compared to 13,993 in 2023)¹, and Europe saw a total M&A volume increase of 12%. However, Switzerland has fallen short of expectations, with transaction volumes declining by 5%. This decline was also observed in its neighbouring countries (Germany, Austria and Italy), which reported lower transaction volumes compared to 2023.

2024 was also marked by extended review processes for deal approvals by competition authorities, especially for larger transactions. Several anti-China trust regulations are also hindering Asian buyers from making deals. Therefore, the past few years have seen a backlog of transactions that have not materialised, many of these transactions are now poised to conclude in 2025, setting the stage for a surge in M&A activity.

Since the start of 2025, we have witnessed an increase in activity of new deals being prepared for market. This convinces us that there is an increased appetite for deal-making amongst SMEs, and we remain optimistic that the downward trend in central bank interest rates could also stimulate the M&A market. The SNB lowered its rates by 50bps to 0.5% on 13/12/2024 and believes there is still room to cut interest rates again if needed, in order to ensure price stability in the medium term. In addition, the strong balance sheets of Swiss companies and private equity houses flush with dry powder provide ample capital for new deals, whilst the strength of the CHF and the resilience of the Swiss economy further underpin this positive outlook.²

However, there are undoubtedly potential headwinds which may impact appetite for M&A. Looking beyond our borders, we see numerous economic and geopolitical factors creating uncertainty and instability in the international environment. The unresolved conflicts in Ukraine and across the Middle East, and a more hawkish approach to foreign policy under the new US administration, mean that there remains a high level of instability. Swiss companies also face uncertainty with their two largest trading partners, with higher US tariffs becoming a potential threat, and the continued political uncertainty in Germany.

The geopolitical situation is very volatile, and this uncertainty is reflected in the number of global deal completions seen in January 2025, which fell by 49% compared to 2024.³ It is clear that 2025 will be a turbulent year which makes it challenging to make a meaningful and long-term forecast. For those who want or need to execute M&A in 2025 there will undoubtedly be additional challenges to navigate.

Methodology

In this edition, we have adjusted our methodology to take account of completed transactions rather than announced deals. This adjustment enhances the precision of our analysis by emphasising finalised outcomes, which provide a robust basis for understanding the economic impact of M&A activity. Our previous methodology, which captured market sentiment effectively and aligned with industry standards, remains a valid approach for analysing deal-making trends. Building on that foundation, this methodological refinement reflects our commitment to delivering comprehensive and actionable insights.

Contributors

We are grateful to Camille de Seroux and Nicolas De Oliveira for their valuable inputs to this report.

Previous editions
 

If you are interested in the reports of the previous years, please contact us.