Foreign and domestic private equity firms expect the wave of corporate restructuring in Germany to continue this year, keeping them busy doing large buy-outs. Industry players predict steady business in this segment in 2004, in contrast with lacklustre activity in mid-market buy-outs, particularly of family companies, and venture capital.

As banks continued to dispose of corporate holdings and reduce debt financing, the country dominated Europe's large buy-out scene in 2003, accounting for 11 of the 34 buy-outs worth €500m ($610m) or more.