📢 Aymeric Dégremont from Joffe & Associés comments in Option Droit & Affaires on the rebounding SME acquisition market… but negotiations remain tense.
Despite the recovery in acquisitions of companies valued up to 50 million euros, the complexity of negotiations is still a major issue. Discussions frequently stumble over demanding legal clauses, such as earn-outs and representations and warranties (R&W), which are true sticking points between buyers and sellers.
🔍 Pre-acquisition audits have also been significantly strengthened: every financial, legal, social, IT, and compliance aspect is now thoroughly scrutinized.
👉 The result: longer processes, sometimes discouraging for sellers.
Aymeric Dégremont points out that “earn-out clauses used to focus on validating forecasts, confirming order books, or renewing contracts, but now they respond to the succession of shocks that have led to the macroeconomic instability we are experiencing.”
He adds that “North American buyers pay almost systematic attention to themes that their European or French counterparts detail less, such as compliance, cybersecurity, and GDPR.”
👉 In summary: the demands of the SME M&A market are increasing, and vigilance is more crucial than ever for successful transactions.