Market consolidation

Problem

Fragmented structure

The structure of the domestic SME sector is way too fragmented, the ratio of micro enterprises is higher than in the developed economies. (91% in Hungary compared to 81,5% of Germany). The result of the fragmented structure is that domestic SMEs do not exploit the competitiveness and productivity potential arising from size efficiency which leads to a loss of productivity on a macroeconomic level.

Fragmented structure
Fragmented structure

Solution

We have identified what stops the SMEs from growing. It is their relative small size (compared to other European businesses) financial strength and the lack of access to modern technology and innovation needed for development. Our KKVPRO market consolidation programme was created to be the catalyst of the hungarian acquisition market, mostly through industry-related acquisitions and help exploit scale efficiencies of these mergers and other synergies.