Wir informieren Sie über aktuelle Entwicklungen und Trends im internationalen M&A-Markt, erfolgreich abgeschlossene Transaktionen sowie unsere praxisnahen M&A-Workshops für Unternehmer.
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German M&A market remains mainly positive
The German M&A market has seen a very positive start into 2022 with strong/record M&A activity expected both from strategic as well as from private equity investors. The war in Ukraine has now led to new risks for the German economy mainly related to high energy prices and new/additional supply side constraints.
Strategic M&A deals do not seem to be questioned by uncertainties related to the war and inflation fears as do interesting deals led by private equity investors with huge amounts of liquidity. Deals involving assets in/linked to Russia and the Ukraine will be difficult to handle. In general, market participants remain very positive and are reporting strong deal pipelines. Valuations for small and mid-cap companies which had stagnated at a high level in the past months have recently seen a small increase. This is especially the case for small cap transactions in the technology sector.
Besides supply chain disruptions and high energy prices the labour market – with shortages in skilled workforce „supplies“ – remains a limiting factor for growth.
Post by Dr. Sonja Legtmann, EXG CONSULTING
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Italian market scenario in 2021
After a difficult 2020 that marked a reduction in M & A transactions from 1,085 (in 2019) to 830, for a transaction volume, which went down from 52.4 billion in 2019 to 34.5 billion in 2020, and with just 200 investment transactions by foreign entities (600 in 2019) for a transaction volume of 6 billion (18 in 2019), already from the first half of 2021 there has been a strong performance in the Italian market.
The first half of the year saw 522 transactions in Italy (+24.6% vs. first half 2020) for a transaction volume of around 42.4 billion euros, up to 88% compared to the same period last year (22.5 billion in the first half 2020). The major deal was the merger between Fiat Chrysler/Group PSA for 19,2 billion (about 46% of the transaction volume ). While the top 20 deals (including the FAC/PSA deal) absorb 91% (38,7 billion) of whole volume. But only 8 of them exceed 1 billion (source KPMG).
The most attractive sector are TLC and financial services, but also the Industrial (chemical, pharmaceuticals, industrial machinery) and the Consumer Market (fashion and luxury) are very active, as they account for 54% of transactions, (although they represent just 13% in terms of volume).
The return of foreign investors is also particularly significant (up 30%), to which the Draghi „effect“ has undoubtedly contributed, restoring confidence and stability, as well as the outlook for the NRP, which gives hope for the start of structural reforms capable of modernizing the country an attract foreign investments.
The outlook for the second half of the year is very positive, based on current operations volume is estimated at 50 billion.
Post by Marina Alberti, STUDIO ALBERTI
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Developments in the Dutch M&A market
The Dutch M&A market is running at full speed. After the brief downturn in early 2020, activity has increased sharply in almost all sectors since the summer of 2020. In the first half of 2021, activity continued to grow. The market is characterized by high demand for suitable acquisition candidates, with the supply of target companies increasingly lagging behind the high demand. The result is an increase in purchase prices driven by the combination of scarcity in suitable supply, low cost of capital and a large amount of capital available for acquisitions.
Specific Dutch sectors with high levels of M&A activity include flexible staffing, insurance, childcare and managed services (networks, cloud, software, communication). Many private equity players are active as buyers in these markets building portfolios.
For the second half of 2021, we anticipate that this strong trend in M&A activity will continue unabated and that the shortage of suitable target companies will put further upward pressure on purchase prices.
Post by Bas Brusche, FACTOR & ROS
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Is early-stage venture becoming a growth investor’s game?
Global venture funding hit an all-time high in the first quarter of 2021. That sort of increase in venture funding is typically attributable to growth in late-stage funding. But, along with a surge in late-stage funding, there is also a marked increase in early-stage funding last quarter, with $39 billion invested in nascent startups, up from $25 billion in the fourth quarter and $22 billion in the first quarter of 2020.
The Q1 figure marks an all-time global high for early-stage funding.
Growth equity leads early stage The most active investor leading at the Series A and B stages was, surprisingly enough, a growth-stage investor: Insight Partners, which led six Series A fundings. The firm is not alone: Private equity investors now lead just shy of a quarter of all Series A and B fundings, up from 15 percent a decade earlier, relative to venture and micro venture leads.
Post by Jaime Medina, SISOCO PARTNERS.
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Relatively strong M&A activity in the USA
M&A activity in the USA has been relatively strong through the end of 2020 and 1Q21. In 2020, many deals that were delayed due to the onset of Covid were closed in 3Q and 4Q. Concerns over the new Democratic leadership and potential plans to raise capital gains taxes on the sale of businesses have accelerated demand for transactions.
On the negative side, many companies saw dips in their revenue and profit in 2020 and delayed transactions until they could get back to pre-Covid levels.
Likewise, the market for senior debt has been very tight, so some leveraged buy-outs have been pushed back or else have relied more heavily on equity capital.
Post by Andrew Heitner, ALCON PARTNERS