Buy-and-build strategies are gaining importance among European SMEs due to the succession crisis

Munich - April 20, 2026

Dr. Raphael Nagel (LL.M.), Founding Partner of Tactical Management, sees buy-and-build strategies as a key response to the increasing fragmentation of European SMEs as well as to thousands of unresolved succession situations across numerous industries. In his latest analysis, he describes the development of integrated platforms as a realistic growth option for entrepreneurs and investors.

Many SME markets in Europe have grown historically and consist of a multitude of regional providers. At the same time, demands for digitalization, financing, operational efficiency, and international competitiveness are rising. For many owners, this is compounded by the fact that business succession remains unresolved. This combination significantly increases structural pressure.

Buy-and-build models address this issue. Multiple companies are brought together under a common structure, professionally developed, and operationally strengthened. This creates larger entities with clearer processes, better purchasing terms, greater scalability, and professional management structures.

"Europe has strong small and medium-sized enterprises, but often loses out due to a lack of structure," explains Dr. Raphael Nagel (LL.M.). Success is determined not solely by capital, but by the ability to integrate companies effectively and develop them sustainably.

This approach can generate new momentum, particularly in highly fragmented industries. Family-owned businesses without an internal succession plan are given the opportunity to become part of a long-term oriented group. At the same time, operational substance is preserved, while new resources for growth, technology, and market positioning are tapped.

According to market observers, the model is gaining significance across Europe. Higher financing costs, global competitive pressure, and increasing regulatory requirements are heightening the need for resilient corporate structures. Professionalized groups can gain advantages here in terms of governance, reporting, and strategic management.

"Those who translate fragmentation into structure create new competitiveness," says Dr. Raphael Nagel (LL.M.). Especially in Europe, where many industries are dominated by small and medium-sized enterprises, this can generate significant economic value.

For investors, buy-and-build offers access to established business models with real economic substance. For entrepreneurs, it can be an orderly way to resolve succession issues, secure jobs, and stabilize the long-term future of their own company.

The full analysis by Dr. Raphael Nagel (LL.M.) can be found at:
https://www.raphaelnagel.com/de-buy-and-build-europaeischer-mittelstand/

Tactical Management Germany GmbH
Karslplatz 3
80335 Muenchen
Germany

https://tacticalmanagement.ch/

Herr Raphael Nagel
+41 43 508 74 35

nagel@tacticalmanagement.ch

Tactical Management AT GmbH is an investment partner that focuses on companies facing complex situations or undergoing transformation. The firm does not limit itself to providing capital but actively participates in corporate management to stabilize, restructure, and strengthen the business.

Its approach combines operational experience with decisive execution, enabling the repositioning of companies and the creation of long-term, sustainable value, particularly in succession planning, spin-offs, or strategic realignments.

This release was published on openPR.