IMAP GERMANY CONSTRUCTION SECTOR REPORT DACH REGION
For years, the construction sector was seen as an M&A latecomer. That has changed dramatically. Our 2026 Construction Sector Report outlines why the DACH region has seen a historic surge in deal activity since 2021 – and what it means for investors and business owners.
KEY HIGHLIGHTS AT A GLANCE:
Historically, M&A activity in the DACH construction sector lagged well behind other industries. For instance, the software sector alone recorded 867 transactions involving DACH targets in 2020 - around 13x the level seen in construction. Since 2021, the situation has shifted fundamentally. Between 2021 and 2025, the average deal volume in the construction sector was more than double than in 2015–2020 - an increase of roughly 124%. IMAP has analysed the key drivers behind this development and structured them into pull and push factors.
1. PULL FACTORS: WHAT MAKES THE SECTOR ATTRACTIVE TO INVESTORS
- Persistently rising demand in infrastructure & residential construction: The structural backlog in both areas creates a market environment that is largely independent of economic cycles and offers long-term planning certainty.
- Consolidation wave in the construction sector: The highly fragmented, SME-dominated market structure offers significant synergy potential and attractive buy-and-build opportunities for both strategic investors and financial sponsors.
- Massive public infrastructure investments: Extensive government programs, including the €500 billion special fund (“Sondervermögen”), are further accelerating investment momentum and increasing the sector’s attractiveness.
2. PUSH FACTORS: WHAT INCREASES THE WILLINGNESS TO SELL AND OPENNESS TO EXTERNAL CAPITAL
- Higher costs for building materials and construction services: Sharp cost inflation since 2021 has intensified margin pressure. As a result, many companies are increasingly open to outside capital and strategic partnerships.
- Higher financing costs following the interest rate shift: Since 2022, rising interest rates have reshaped financing costs, valuations and project structures - prompting many market participants to explore alternative capital solutions and partnerships.
- Demographic change and unresolved succession: The retirement of the baby boomer generation is leading to a growing number of unresolved succession situations in the SME-dominated construction sector. This is noticeably increasing the willingness of many business owners to consider a sale.
Increasing regulation & digitalisation – drivers on both sides: Stricter energy and climate requirements are significantly increasing the need for modernization and renovation in the building sector. This creates attractive, consolidatable growth niches for well-capitalized investors.
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Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
