Intransparency in corporate transactions

Corpo­rate tran­sac­tions in the mid cap segment are charac­te­ri­zed by high uncer­tain­ties of market parti­ci­pants (buyers and sellers). The large number of buyers and sellers as well as the typi­cally poor infor­ma­tion situa­tion in the compa­nies lead to a parti­cu­larly strong lack of trans­pa­rency in the market for medium-sized tran­sac­tions. A distinc­tion can be made between beha­vi­oral, quality and price uncer­tain­ties. Finally, there are uncer­tain­ties on both sides regar­ding the value of the company and the achie­va­ble price. Due to the intrans­pa­rency and lack of compa­ra­bi­lity of the proper­ties for sale on the market for mid-market tran­sac­tions, the achie­va­ble price is diffi­cult to esti­mate for sellers as well as for many buyers. Compared to buyers with tran­sac­tion expe­ri­ence, such as finan­cial inves­tors, the seller typi­cally has considera­ble infor­ma­tion disad­van­ta­ges. On the other hand, the seller has an infor­ma­tion advan­tage regar­ding the quality and nature of the target company.