M&A in family businesses: A balancing act

This is the second part of a five-part series exploring the various facets of Malta’s evolving M&A landscape.

M&A in Malta often extends beyond financial and strategic considerations, particularly given that the majority of businesses are family-owned or owner-managed.

“With most businesses in Malta being family-owned or owner-managed, M&A transactions often carry emotional weight,” remarks Jonathan Shaw, Partner at Hatten M&A Advisory. “Balancing financial outcomes with the emotional and psychological safety of all parties is critical to success.”

Succession planning is a key driver of M&A activity in Malta, as business owners look to secure smooth generational handovers or make a strategic exit. The emotional aspect of these transactions cannot be underestimated, as founders often grapple with letting go of businesses that they have built over decades.

As the year unfolds, the broader economic backdrop is likely to influence the market further. Factors like rising interest rates and stricter regulatory scrutiny have added complexity to transactions but have also sharpened focus on valuation discipline and due diligence rigour.

This forms part of a feature first published on Malta CEOs 2025, the sister print brand to MaltaCEOs.mt, both owned by Content House.