MA Thesis

Influence Of Private Equity Investments And Acquisitions On Smes Performance In Germany



Published in:

Kyiv School of Economics
private equity investments
smes performance

In driving the progress and growth of all global nations, small and medium-sized enterprises are indispensable. The Federal Ministry of Economic Affairs and Climate Action notes that in Germany, SMEs comprise 35.3% of all sales and generate 58.5% of all employment positions, affirming their role as the prime impetus for economic innovation and development (Federal Ministry of Economic Affairs and Climate Action, 2019). These statistics reaffirm the significance of SMEs as engines of economic innovation and development, exemplifying their indispensable position. Despite this, such establishments often face the challenge of inadequate funds to support their expansion and progress. In recent times, private equity investments have emerged as a promising solution to this financial challenge, gaining substantial attention from researchers, policymakers, and industry practitioners. These investments, beyond the infusion of capital, offer a multifaceted approach involving resource provisioning, knowledge transfer, and strategic direction. The consequential impact of private equity investments on SMEs' growth, profitability, and long-term viability has positioned them as a favored funding option. This study embarks on an exploration of paramount importance, seeking to comprehend the profound influence of private equity investments on the performance of SMEs, specifically within the dynamic landscape of Germany. At its core, this research aspires to investigate how private equity investments wield their transformative power, with findings intended to inform and empower private equity firms, policymakers, and investors in making informed decisions.