Seminar paper from the year 2020 in the subject Business economics - Investment and Finance, grade: 1,7, The FOM University of Applied Sciences, Hamburg, language: English, abstract: The aim of this thesis is to examine the transaction environment for medium-sized German companies and to question the motives and obstacles for transactions at medium-sized companies. Derived from this, the reader is to be shown the special features of medium-sized merger and acquisition transactions. In the first part of the thesis, a theoretical basis is formed, which first presents the standard process of such a transaction to the reader. Digitization and globalization are increasingly forcing German SMEs to compete with foreign companies. New large growth markets outside Germany require an adjustment of the internationalization strategy. To remain competitive, companies must expand existing networks and merge into new networks. Specialize and, if necessary, reduce offers. Increase cost efficiency, optimize and modernize processes and expand production capacities. Furthermore, expand and consolidate the international presence. One opportunity to implement these strategies is the implementation of Mergers & Acquisitions. This term is used to describe a merger or fusion of two companies to form a legal and economic unit or the acquisition of company units or an entire company. "M&A stands for all transactions in connection with the transfer and encumbrance of property rights in companies, including the formation of groups of companies, the restructuring of groups of companies, mergers and transformations in the legal sense, squeeze-outs, the financing of the acquisition of companies, the formation of joint ventures and the takeover of companies." M&A transactions can be achieved through economies of scale and economies of scope by in-creasing activity within the company. In addition, new internal success potentials can be developed and core capabilities can be better utilized. Furthermore, the scope for pricing and negotiation can be increased, thus enhancing market power.