The industry is growing in time with technological upheavals. M creates structure and partnership in a dynamically driven market.

Hardly any industry is as closely linked to the major issues of our time as electrical engineering and electronics. Energy transition, digitization, automation, mobility revolution and security needs – they are all based on electrical systems, networked sensor technology, intelligent control technology and energy-efficient power electronics. Demand is high, the pace is fast, the innovation cycles are short.

At the same time, many medium-sized companies are reaching structural limits: high complexity, a shortage of skilled workers, internationalization pressure and increasing requirements for standards, certifications and scalability demand a clear focus. The owners, often engineers themselves, face the challenge of transforming technological excellence into long-term entrepreneurial success – through growth, participation or handover.

starkpartners supports technology-oriented companies in the fields of electronics manufacturing, industrial automation, power electronics, control technology, embedded systems, sensor technology, and connectivity—ranging from high-mix low-volume providers and EMS service providers to specialized series manufacturers for industry, energy, medical technology, and mobility.

We understand the challenges that arise when development, production planning and customer project management work under one roof. We know the stumbling blocks in scaling E²MS companies or transferring in-house developments into certified series products. Our clients appreciate our ability to combine technological depth with strategic thinking – while remaining approachable.

The M market in electrical engineering is highly dynamic and at the same time fragmented. Strategic buyers are specifically looking for specialists in power electronics, drive technology, sensor integration or signal processing in order to deepen their value creation or tap into new markets. Private equity investors are also active – especially in scalable companies with a technology focus and an international customer portfolio.

Particularly in demand are providers who have technological uniqueness, long-term customer loyalty and reliable production processes. At the same time, the market is becoming more selective: ESG criteria, software expertise, supply chain transparency and the ability to modularize are becoming increasingly important. Companies that can clearly formulate their technical relevance have the best chances of positioning themselves for the future with the right partner.

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Typical target companies in the electrical engineering M context

Attractive target companies are often highly specialized and deeply embedded in industry-specific supply chains—for example in industrial automation, power electronics, control engineering, embedded systems, sensor technology, or interconnect technology. They operate as development and system partners, component manufacturers, or providers of integrated electronic solutions for industry, energy, medical technology, or safety-critical applications.

A significant share of this value creation comes from industrial implementation in electronics manufacturing—particularly through electronics manufacturing services providers (EMS / E²MS) that combine development, industrialization, and series production. This includes providers of PCB assembly (SMT/THT), system integration, and control and power electronics.

Especially in the SME-driven EMS segment (approx. €10–50 million in revenue), we often encounter owner-managed companies with high vertical integration, long-standing customer relationships, and strong variant expertise. At the same time, many of these companies—as well as technology-focused development and system providers—face key strategic questions: scaling production, expanding engineering capabilities, positioning along specific end markets, or managing succession planning.

At the same time, we are seeing growing interest from international strategic buyers—particularly from Scandinavia—who are specifically looking for mid-sized technology and EMS companies in Germany to expand their presence in Central Europe and gain access to industrial customer markets.

High vertical integration, ESD-compliant production environments, ISO/EN certifications (e.g., ISO 9001, ISO 13485, IPC-A-610), and documented series production experience are as typical as qualified specialists and lean organization. Companies with additional development services (E²MS), proprietary IP, or specific application know-how – for example, in measurement, control, and regulation technology – attract particular attention in the MA context.

Valuation dynamics market logic: Technological depth creates value

In electrical engineering, company valuations are strongly influenced by the technology spectrum, customer mix and maturity of the organization. The crucial factor is whether the company produces on a job-order basis or has developed its own platforms, whether manufacturing and development are separate or integrated, and how reliable customer loyalty is – especially in regulated markets such as medical technology or railway technology.

Valuation differences arise across the entire value chain: companies with deep engineering capabilities in areas such as power electronics, embedded systems, control engineering, or industrial automation regularly achieve higher multiples than purely execution-focused structures. Software content, system expertise, and the ability to integrate into customer applications are becoming increasingly important.

In electronics manufacturing (EMS), the market also differentiates further: standardized assembly services (e.g., pure SMT/THT manufacturing) are subject to significant price and margin pressure, while providers with an engineering component, system integration, and clear end-market positioning achieve significantly higher valuations.

Integrated service offerings in the sense of E²MS (engineering, prototyping, series production, and lifecycle services), high variant expertise (high-mix-low-volume), long-term customer relationships, and certifications for regulated applications are particularly value-driving. Supply capability in strained procurement markets, supply chain resilience, and the ability to modularize and industrialize also directly impact transaction attractiveness.

Companies that clearly define their role along the value chain – for example, as development partners, system suppliers, or specialized series manufacturers – and reflect this positioning in their business model, regularly achieve above-average valuations in the market.

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