Transactions
Acquiring Companies and Real Estate in Germany: A Guide for Investors from the USA, UK and Canada
Private equity firms, family offices and strategic buyers from North America and the UK are looking for access to the German Mittelstand and real estate market. What makes access difficult – and how a local acquisition representative structures the process.
Germany is an obvious target market for many international buyers: a broad Mittelstand of specialised companies, a large and diverse real estate market and a reliable legal framework. Yet for private equity firms, family offices and strategic acquirers from the USA, the UK and Canada, the path to the right target is often longer than expected.
This article outlines typical hurdles foreign investors face when acquiring companies or real estate in Germany, and the tasks a local acquisition representative – a German Desk – can take on.
Note: the following provides a general overview of possible transaction structures and related questions. It does not constitute legal or tax advice. The specific legal and tax consequences should be reviewed for each transaction by the relevant professional advisers.
Why access to German targets is difficult
Many Mittelstand companies are owner-managed and are not offered through broad sale processes. Succession is often discussed confidentially and through personal networks. The same applies to real estate: a share of transactions is completed without public marketing.
Language and business culture add to this. Owners generally expect to be approached in German, to have a personal point of contact and a transparent process. An approach from abroad without a local connection is often met with reserve.
- Off-market targets that are never publicly advertised
- Owners expect a personal approach in German
- No local presence for meetings and site visits
- Different expectations regarding process and pace
Buy-side M&A: what foreign acquirers should consider
For private equity and strategic buyers, a structured acquisition starts with a clear search profile: sector, size, region, intended ownership structure and the role of the existing shareholders. The more precise the profile, the more targeted the outreach.
In succession situations, the future of the company, its employees and its location often matter to owners alongside the price. Buyers who address this in their approach are more likely to be seen as serious counterparts.
Real estate: acquiring properties and portfolios
In real estate, the quality of the documentation and the on-site assessment matter alongside location and asset class. Site visits, conversations with property managers or operators and an initial review of rents and capex require a presence in Germany.
Fox Capital supports acquisitions of single assets and portfolios generally from EUR 10 million – including residential, office, logistics, outdoor storage and hotel and operator real estate.
What a German Desk does
A German Desk acts as the investor's local point of contact and representative. Fox Capital acts exclusively on behalf of the investor and never as a buyer itself.
- Refining the search profile for M&A or real estate
- Discreet deal sourcing and confidential first approach to owners
- Meetings, site visits and on-site screening
- Communication in German and bridging business cultures
- Support in negotiations and coordination of advisors
Legal and tax questions
Acquisition structure, tax planning and any review or approval requirements depend on the individual case and on German law. These questions are handled by the lawyers and tax advisors appointed by the investor. Fox Capital does not provide legal or tax advice and coordinates the work with the advisors during the process.
In short
For investors from the USA, the UK and Canada, access is often decisive when acquiring in Germany: a precise search profile, a discreet approach in German and a presence on the ground. A German Desk combines these tasks on behalf of the investor.
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This article refers to transactions in Germany. It does not constitute legal or tax advice under German or any other law.
Legal and tax notice
The information on this website is provided for general information on real estate, financing and corporate transactions only. It does not constitute legal, tax or other individual professional advice and cannot replace case-specific advice from suitably qualified lawyers, tax advisers or other professionals.
The legal and tax consequences of a transaction depend in particular on its specific structure, the parties involved, existing contracts and the applicable legal and tax framework. Such questions should therefore be reviewed individually by the relevant professional advisers before any decision is taken.
Within the content presented on this website, Fox Capital does not provide legal or tax advice.