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GOVERNMENTS THAT INVEST IN CLIMATE INNOVATION INVEST IN GROWTH

STUDIES > Macro

BCG
As of today, 191 countries have ratified the Paris Climate Agreement, and more than 50% of world GDP is generated by countries that have made net-zero pledges. President Biden has announced that the US will target reducing emissions by 50% or more by 2030 (compared with 2005 levels) on the way to net zero emissions by 2050. The EU plans to be carbon neutral by 2050. China’s president has committed his country to achieving carbon neutrality by 2060. But getting there will take a lot of work. Annual global emissions of carbon dioxide equivalents amount to about 51 gigatons. We estimate that existing technologies can eliminate about 25% of current emissions, and technologies in early adoption can address another 40%. This leaves approximately 35% of current annual emissions, for which we need new technologies if we are to achieve net zero. >more

GERMAN VENTURE CAPITAL BAROMETER - Q2 2021

STUDIES > Alternative Investments

KfW Research
The upturn in sentiment on the German venture capital market continues in Q2 2021. The business climate indicator of the early-stage segment rises by 10.5 points to 37.8 balance points, marking a new record. The development of climate components on fundraising, exit opportunities and deal flow strength have fueled the business climate. All three indicators have set new records. In terms of exit opportunities, the IPO climate has picked up the most, reflecting the currently well-filled IPO calendar. >more

CASH TO DRIVE THE SHIFT: AUTOMOTIVE SECTOR WORKING CAPITAL REPORT 2021

STUDIES > Corporate Finance

PwC
Supply chain disruptions, fluctuations in demand and the shutdown of production during the first lockdown in spring 2020 put the automotive industry to the test last year. As a result, passenger car production declined 16 percent between 2019 and 2020. However, the pandemic also had an impact on the working capital management (WCM) of OEMs and suppliers: for example, the capital lockup period temporarily rose to 60 days in the second quarter of 2020, but leveled off again at 33 days by the end of the year - four days higher than in 2016. In this context, the working capital performance of manufacturers in particular deteriorated, while suppliers were able to improve their WCM. These are the findings of a PwC analysis of more than 800 companies in the automotive industry. >more

DACH CAPITAL MARKET STUDY: JUNE 30, 2021

STUDIES > M&A

ValueTrust, finexpert and the Institute of Management Accounting and Auditing at WU Vienna publish the ninth edition of the ValueTrust DACH Capital Market Study. In our DACH Capital Market Study, we derive valuation parameters and cost of equity in a comprehensive manner for Germany, Austria and Switzerland to provide a sound basis for investment decisions. We present current valuation levels based on stock market multiples and estimate the cost of equity using four different methods for twelve different sectors. >more

FÜR EIN WIRTSCHAFTSWUNDER 2.0: STARTUPS KÖNNTEN BIS 2030 FAST 4 MILLIONEN JOBS IN DEUTSCHLAND SCHAFFEN

STUDIES > Macro

Roland Berger | Bundesverband Deutsche Startups
Startups and scaleups are valued above all for their innovative strength - be it because they make payment easier with payment apps, or because they develop novel vaccines or revolutionize business processes with new software. Relatively little is known, however, about their employment effect, i.e., their role in creating and securing new jobs. In a recent study, Roland Berger, the Internet Economy Foundation, the German Startups Association and Deutsche Börse examined the topic in greater detail. >more

UPDATE CAPITAL MARKET DATA July 15, 2021

CAPITAL MARKET DATA > Betas, Multiples, Returns

finexpert updated the capital market data (Betas, Multiples, Returns) as to July 15, 2021. For data access, you must be a basic finexpert member. In addition, premium members have access to the archive for our capital market data from 2007 onwards. >more

EUROPEAN CAPITAL MARKET STUDY: JUNE 30, 2021

STUDIES > M&A

ValueTrust
ValueTrust has published the eighth edition of the ValueTrust European Capital Market Study (as of June 30, 2021). With this study, ValueTrust provides a data compilation of capital market parameters that enables an enterprise valuation in Europe. The purpose of the study is to serve as a tool and data source as well as to show trends in the parameters analysed.>more

THE RISE OF ESG IN THE M&A PROCESS

STUDIES > M & A

Baker Tilly
Dealmakers are more focused on ESG than ever before. In large numbers, many confirm that ESG issues are critical both to their own organizations and also to the way they approach potential transactions. Most say they have even walked away from at least one deal on ESG grounds; many say their view on valuation has been materially affected by ESG considerations that have emerged during due diligence. >more

WEBINAR: UPDATE CORPORATE VALUATION WITH PROF. DR. SCHWETZLER

FINEXPERT SEMINARS > Webinar
3x3 hours 22 to 24 November 2021

Bernhard Schwetzler

  • Growth in Terminal Value
  • Insolvency, insolvency costs and corporate valuation
  • Other possible controversial issues in corporate valuation >more 
STANDORT DEUTSCHLAND 2021: AUSLÄNDISCHE DIREKTINVESTITIONEN

STUDIES > Macro

EY
Foreign investors largely remained loyal to Germany as an investment location last year despite the Corona crisis and lockdowns: The number of investment projects announced by foreign companies in Germany fell by only four percent year-on-year to 930. The UK and France recorded much sharper declines: In France, the number of foreign investments fell by 18 percent to 985, and in the UK by 12 percent to 975. Nevertheless, the UK and France occupied the top two places in the European location rankings ahead of Germany. Across Europe, a total of 5,578 investment projects by foreign investors were announced, 13 percent fewer than in the previous year - there was no such slump even in 2009. >more

CFO PANEL FRÜHJAHR 2021

STUDIES > Corporate Finance

Horvath & Partners / FINANCE
For the FINANCE CFO Panel, the FINANCE editorial team surveys more than 150 CFOs of leading German companies every six months. We want to find out what moves CFOs, what trends in financing and corporate strategy they expect, and what drives them personally. The panel shows assessments of current topics relating to modern financial management - exclusively from the CFOs' point of view. >more

FINEXPERT COMMUNITY

We welcomed our 2.200th member! (May 2021) >more

GLOBAL TOP 100 COMPANIES BY MARKET CAPITALISATION

STUDIES > Performance

PwC
The market capitalization of the world's 100 most valuable public companies (PLCs) has increased by $10.3 trillion (48 percent) in just one year. At the end of March 2021, it stood at $31.7 trillion - a new record. This is one of the core findings of the latest "Global Top 100" ranking published annually by the accounting and consulting firm PricewaterhouseCoopers (PwC). The analysis compares the total value of the world's 100 most valuable companies on March 31, 2021, with the value on March 31, 2020, and also presents the changes by industry and region. >more

INVESTING IN EUROPE: PRIVATE EQUITY ACTIVITY 2020

STUDIES > Alternative Investments

Invest Europe
The most comprehensive analysis of fundraising, investment and divestment trends with data on more than 1,600 European private equity and venture capital firms, the 2020 statistics cover 89% of the €708bn in capital under management in Europe. >more

UPDATE CAPITAL MARKET DATA April 15, 2021

CAPITAL MARKET DATA > Betas, Multiples, Returns

finexpert updated the capital market data (Betas, Multiples, Returns) as to April 15, 2021. For data access, you must be a basic finexpert member. In addition, premium members have access to the archive for our capital market data from 2007 onwards. >more

M&A: DIE UNTERSCHÄTZTE KERNKOMPETENZ IM AUTOMOBILGESCHÄFT

STUDIES > M & A

Bain & Company
The volume of strategic M&A deals in the automotive industry has more than doubled within five years as the profound change in the industry requires new strategic approaches. With M&A transactions and partnerships, suppliers can secure a leading position in a market in which high-tech and software are playing an increasingly important role. >more

KFW-KREDITMARKT­AUSBLICK: KREDITNEUGESCHÄFT RUTSCHT INS MINUS

STUDIES > Corporate Finance

KfW Research
New lending business of banks and savings banks with domestic companies and self-employed persons, as calculated by KfW Research, slipped significantly into negative territory in the final quarter of 2020. Compared with the previous year, it fell by -4.3%, as the current KfW Credit Market Outlook shows. For the first half of the year, KfW Research forecasts a continuation of the downward trend: In the first quarter, new lending business is likely to be -8% below the previous year, and -10% in the second. >more

DER DEUTSCHE BETEILIGUNGSMARKT 2020

STUDIES > Alternative Investments

BVK
2020 was no ordinary year and also posed numerous challenges for the German private equity market. Despite this, private equity companies in Germany invested a total of €12.6 billion. This not only underlined the strength of the German private equity market, but also helped many companies through the pandemic and is now supporting them in overcoming the further consequences of the pandemic. >more

VENTURE CAPITAL AND STARTUPS IN GERMANY 2020

STUDIES > Alternative Investments

Ernst & Young
The funding of the current top 100 German tech startups has further improved in 2020 compared to previous years: They have been able to raise 13.7 billion US dollars from investors since their founding. Compared to the top 100 startups in 2019, this represents an increase of USD 3.7 billion or 37 percent. The ten best-funded technology startups in 2020 received a combined total of 1.3 billion U.S. dollars less than the top ten of the previous year, bringing their venture capital total to 1.8 billion U.S. dollars. On the other hand, the investments were distributed among more startups: The number of deals in the technology segment rose from 791 in 2019 to 820 last year. >more

SPACS: RESHAPING M&A AND IPOS FOR EUROPEAN COMPANIES

STUDIES > Corporate Finance

Skadden
Special purpose acquisition companies (SPACs), also referred to as “blank check” companies, have reached record numbers in the United States, with 242 SPACs conducting an initial public offering (IPO) on either NYSE or Nasdaq Stock Market and 52 announcing an initial business combination or “de-SPAC” in 2020, up 320% and 156% respectively over 2019, according to the research firm Deal Point Data. Although listings of SPAC entities on European exchanges have been much less common, the number of European companies choosing to go public in the U.S. by way of a de-SPAC transaction is on the rise. >more

GERMAN TAKEOVER REPORT 2021

FINEXPERT REPORT > Takeover

finexpert | ValueTrust
The 2021 issue of the finexpert-ValueTrust German takeover report covers all takeover offers and delisting tender offers of the year 2020 according to the German takeover code WpÜG and provides extensive information on relevant variables like bid types, premia offered, market reaction of target’s and (if available) on bidder’s stock prices. >more
3 Market Overview
12 Capital Market Reaction
16 Statements & Fairness Opinions
22 Success Rates
29 Takeover Case Study: ISRA Vision AG
31 Transaction Details 2020

UPDATE CAPITAL MARKET DATA Jan 15, 2021

CAPITAL MARKET DATA > Betas, Multiples, Returns

finexpert updated the capital market data (Betas, Multiples, Returns) as to January 15, 2021. For data access, you must be a basic finexpert member. In addition, premium members have access to the archive for our capital market data from 2007 onwards. >more

QoD#24: Re-/Delevering: ßL = ßU (1+D/E) or ßL = ßU (1+(1-t)D/E) ?

TUTORIALS > Valuation Video

Bernhard Schwetzler
Applying industry betas requires some adjustments in case of differences between the leverage of the industry and the leverage of firm to be valued. This adjustment is called the De-/Relevering of the beta factors. There are two popular versions of the corresponding equations for this procedure. This video discusses the requirements for both equations necessary to produce reasonable results. It also makes a judgement on the realism and the consistency of these requirements. (February 5, 2021).  >more  (videoarchiv QoD#1-24

EUROPEAN CAPITAL MARKET STUDY: DECEMBER 31, 2020

STUDIES > M&A

ValueTrust
ValueTrust has published the seventh edition of the European Capital Market Study (as of December 31, 2020), which is issued semi-annually. In our European Capital Market Study, we show the cost of equity for ten different sectors according to four different methods. >more

WARUM VIELFALT IN PE-PARTNER-TEAMS ZU BESSEREN ERGEBNISSEN FÜHRT

STUDIES > Alternative Investments

HHL | EY
According to a study by EY and the Center for Corporate Transactions & Private Equity (CCTPE) at HHL, diversity in terms of gender, nationality and age boosts buyout performance. While sociodemographic diversity in lead partner teams has a positive impact on performance, occupational diversity has a detrimental effect. For more complex buyout deals, different rules apply: Here, both diversity dimensions have a positive impact on value creation. >more

IMMOBILIENBRANCHE - DAS ENDE EINER ERFOLGSGESCHICHTE?

STUDIES > Alternative Investments

Andersch
A minus of 25 to 30% in textile retail - the Corona year 2020 threatens to become a disaster not only for the fashion industry, but also for the landlords of the business units. Even the top locations will not be spared from the expected increase in insolvencies. Suppliers must prepare for this now - and act. The industry update provides an up-to-date overview of the entire market situation of the real estate industry in and after the corona crisis. >more

WHAT TO WATCH IN 2021

STUDIES > Performance

Lazard
As 2020 nears an end, investors face a challenging combination of crosscurrents. On the positive side, the US election has passed with a market-friendly outcome and three COVID-19 vaccines appear to be within weeks of initial distribution, with more likely to follow. Typically, these events would be the all-clear signal investors need to shift out of defensive work-from-home beneficiaries into cyclical recovery plays. However, major developed countries across the Northern Hemisphere are facing new record levels of COVID-19 infections, spurring new economic lockdowns and increasing the risk that many companies, particularly small businesses, might not make it to the other side of this pandemic. Judging from our earlier pandemic experience, this scenario would signal exactly the opposite market reaction as that to the vaccines. Investors face a timing conundrum, indicating yet again that it is likely to be darkest before the dawn. >more

THE MORE THE MERRIER? DIVERSITY AND PRIVATE EQUITY PERFORMANCE

RESEARCH PAPERS > Alternative Investments

Benjamin Hammer, Silke Pettkus, Denis Schweizer, and Norbert Wuensche
2020
This paper explores how diversity among lead partner teams (LPTs) of private equity (PE) funds affects buyout performance. We argue that there is a trade-off between the “bright side” of diversity, i.e., improved decision-making due to a broader set of perspectives, and the “dark side”, i.e., deteriorated decision-making due to a potential for clashes and a lack of cooperation. Our theoretical framework suggests that the net effect on performance depends on whether LPTs are diverse in socio-demographic or occupational aspects. To test this hypothesis, we develop a comprehensive index that measures LPT diversity along six dimensions. Using a sample of 241 buyouts and 547 involved PE partners, we find that higher scores in the socio-demographic component (gender, age, nationality) are associated with higher deal returns and multiple expansion. The opposite is true for higher scores in the occupational component (professional experience, educational background, university affiliation). Further results suggest that the “bright side” of diversity gets relatively more important in case of complex buyouts and uncertain deal environments. >more

DETERMINANTS OF HEDGE FUND INVESTMENT IN CORPORATE ENDGAMES

RESEARCH PAPERS > Corporate Governance

Ludwig Dobmeier, Renata Lavrova, and Bernhard Schwetzler
2020
Under German law the corporate endgame process of obtaining full control over a company offers multiple investment opportunities for investors with high investment flexibility, and is therefore particularly attractive to hedge funds. This paper investigates the determinants of hedge fund investment in corporate endgame processes based on a sample of 76 endgame situations of publicly listed German companies and investment data of 326 hedge funds. Examining characteristics of investment targets, we find that hedge funds invest in companies with a non-dominant majority owner and high stake of index funds as latter’s inability to react in change of control situations creates a supportive investment environment for hedge funds. Hedge funds are most likely to invest after takeover consummation and before announcement of a new endgame transaction. Investigating the determinants of ongoing engagement after initial investment, we find that the presence of other institutional investors, especially hedge funds positively affects engagement likelihood, serving as a validation of the own investment approach. Abnormal performance and trading liquidity of target stock also positively affect hedge funds’ engagement. The results indicate that the endgame process in Germany is an attractive investment opportunity for hedge funds, while hedge fund involvement also adds complexity to the corporate control process. >more

M&A-REPORT OKTOBER 2020

STUDIES > M&A

ZEW
The M&A report is jointly prepared by ZEW and Bureau van Dijk. Every six months, it provides information on current topics and developments in global mergers and acquisitions based on the Zephyr database. Zephyr provides daily updated detailed information on more than one million M&A, IPO and private equity transactions worldwide. >more

VERGÜTUNGSSTUDIE 2020

STUDIES > Performance

PwC
Significant decrease in the remuneration of executive board members in German Dax companies: In 2019, CEOs earned a median of 5.5 million euros - almost 14.6 percent less than in 2018 (6.4 million euros). The decline in the compensation paid to the Board of Management is mainly due to the gloomy global economy at the end of 2019. The main reasons for this were the trade conflict between the U.S. and China and the Brexit negotiations. >more

AUSWIRKUNGEN VON COVID-19 AUF PE-PORTFOLIO UNTERNEHMEN

STUDIES > M&A

Andersch | HHL Leipzig Graduate School of Management
The study 'Impact of Covid-19 on PE portfolio companies' was developed in cooperation between the management consultancy Andersch FTI and the Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management. The responses of 32 PE funds located in the DACH region to their current situation in the Corona crisis were evaluated. The focus was on PE funds with active portfolios with up to ten companies (66 percent). 41 percent of the funds are in the small-cap segment, 59 percent in the mid-cap. The survey was anonymized and conducted with standardized questions according to academic standards over a period of 3.5 weeks in August 2020. >more

FINEXPERT COMMUNITY

We welcomed our 2.100th member! (October 2020) >more

INVESTITIONSSTRATEGIE REAL ASSETS

STUDIES > M&A

Hauck & Aufhäuser | HHL Leipzig Graduate School of Management
The Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management teamed up with Hauck & Aufhäuser to analyze how the addition of private market products such as private equity, infrastructure and real estate affects risk and return of "classic" portfolios, e.g., including bonds and equities. >more

DACH Capital Market Study with Data of June 30, 2020

STUDIES > M&A

ValueTrust, finexpert and JKU Linz
Valuation parameters and cost of equity are derived in a comprehensive manner to provide a sound basis for investment decisions, even more relevant than usual in the current volatile economic environment. Cost of equity are derived according to four different methodologies for twelve different sectors. >more

PRIVATE EQUITY ALS ANLAGEKLASSE FÜR INSTITUTIONELLE INVESTOREN UND FAMILY OFFICES IN DEUTSCHLAND

STUDIES > Alternative Investments

HHL | BVK | KfW
With this joint study, the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK) and the Center for Corporate Transactions and Private Equity (CCTPE) of HHL Leipzig Graduate School of Management, supported by KfW Capital, provide an overview of the investment behavior and strategies of German investors in their private equity investments. >more

FORGING NEW PATHWAYS: THE NEXT EVOLUTION OF INNOVATION IN FINANCIAL SERVICES

STUDIES > Performance

World Economic Forum
Emerging technologies such as AI, 5G, DLT, and quantum are increasingly being used by financial services firms and are forming clusters that are driving innovation throughout the sector. These advances can offer new services and savings to both customers and financial institutions. While financial executives largely recognize the promise of emerging technologies, many financial services firms are still struggling to develop comprehensive innovation strategies given the sheer number of technologies maturing in the industry. >more

Certificate Course "Financial Modelling, Valuation and M&A"

Cooperation with HHL and Handelsblatt

finexpert enters into cooperation with HHL Leipzig Graduate School of Management and the Handelsblatt publishing group - certificate course "Financial Modelling, Valuation and M&A". Together with our new cooperation partners we offer the online certificate course "Financial Modelling, Valuation and M&A" starting in September. This course offers a well-founded examination of the various challenges in the context of a corporate transaction, from valuation/pricing to the accounting treatment and financing of the transaction to the structuring of the transaction. The appropriate modeling of the solutions in Excel is also part of the program. >more

UPDATE CAPITAL MARKET DATA

We updated the capital market data (Betas, Multiples, Returns) as to July 15, 2020. For data access, you must be a basic finexpert member. In addition, premium members have access to the archive for our capital market data from 2007 onwards. >more

CROSS-BORDER BUYOUT PRICING

RESEARCH PAPERS > Alternative Investments

Benjamin Hammer, Nils Janssen, and Bernhard Schwetzler, 2020
Using a dataset of 1,149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that the spread in valuation multiples becomes smaller when the target operates in a country with high accounting standards, when it was publicly listed prior to the buyout, and when information production is facilitated due to large firm size. Further results suggest that local partnering in a syndicate serves as an effective remedy to avoid adverse pricing effects. The spread in valuation multiples is also less pronounced for large buyout funds, presumably because they draw on sufficient organizational resources to cope with cross-border-related transaction costs. >more

DAUNTING DEBT DYNAMICS

STUDIES > Macro

Goldman Sachs
Government deficits, debt issuance and debt levels are set to surge as countries race to ease the economic impact of the coronacrisis. This raises many questions: who will finance this debt, will it force a market repricing and/or an eventual growth or inflation problem, and would greater use of negative rates help avoid any of these risks? At the same time, whether corporate bankruptcies could derail the economic recovery is a key concern. In short, how disruptive the recent, dramatic shift in debt dynamics might be is Top of Mind. >more

WHO OWNS THE GERMAN DAX?

STUDIES > Performance

IHS Markit | Deutscher Investor Relations Verband
DIRK - Deutscher Investor Relations Verband (German Investor Relations Association) and IHS Markit (formerly Ipreo), the leading global investor relations (IR) consulting and technology company, have analyzed the structural changes in the investor landscape of the DAX in the joint market study "Investoren der Deutschland AG 7.0" - "Who owns the German DAX? The main focus of the study was both the distribution and, in particular, the changes and cash flows of the institutional free float of DAX issuers in terms of geography, investment style and the most frequently used trading venues. Investments at investor group level, the importance of extra-financial criteria and investor voting behaviour were examined in detail. >more

INVESTING IN A NEW WORLD: CHINA FIXED INCOME

STUDIES > Performance

UBS
In a world where yields are turning negative and bond markets are becoming more volatile, China's onshore fixed income markets are an attractive option for investors. Offering attractive yields, low correlation, safe haven properties and hedging costs so far in 2020, China bonds have a strong investment case. China bonds also offer strategic, long-term exposure to long-term megatrends in China such as the rise of the RMB as a reserve currency, the growth of China's pension industry, and China's rising status as one of the world's largest economies. >more

COVID-19: CRISIS RESILIENCE MADE IN GERMANY

STUDIES > Macro
Deutsche Bank Research
Germany has got COVID-19 under control faster than many other countries. It also recorded one of the lowest infection fatality rates among the G10 countries. The complete fiscal policy U-turn in response to COVID-19 induced economic damage should allow the German economy to weather this crisis better than many other countries – although the impact will still be massive. We have identified six structural features of the German society contributing to its superior collective resilience. >more

EQUITY RISK PREMIUMS: DETERMINANTS, ESTIMATION AND IMPLICATIONS - THE 2020 EDITION

RESEARCH PAPERS > Corporate Valuation

Aswath Damodaran
2020
The equity risk premium is the price of risk in equity markets, and it is a key input in estimating costs of equity and capital in both corporate finance and valuation. Given its importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice. We begin this paper by looking at the economic determinants of equity risk premiums, including investor risk aversion, information uncertainty and perceptions of macroeconomic risk. In the standard approach to estimating the equity risk premium, historical returns are used, with the difference in annual returns on stocks versus bonds, over a long period, comprising the expected risk premium. We note the limitations of this approach, even in markets like the United States, which have long periods of historical data available, and its complete failure in emerging markets, where the historical data tends to be limited and volatile. We look at two other approaches to estimating equity risk premiums – the survey approach, where investors and managers are asked to assess the risk premium and the implied approach, where a forward-looking estimate of the premium is estimated using either current equity prices or risk premiums in non-equity markets. In the next section, we look at the relationship between the equity risk premium and risk premiums in the bond market (default spreads) and in real estate (cap rates) and how that relationship can be mined to generated expected equity risk premiums. We close the paper by examining why different approaches yield different values for the equity risk premium, and how to choose the “right” number to use in analysis. >more

WHAT IS DIFFERENT ABOUT PRIVATE EQUITY-BACKED ACQUIRERS?

RESEARCH PAPERS > Alternative Investments

Benjamin Hammer, Heiko Hinrichs, and Denis Schweizer
2020
This paper investigates whether private equity (PE)-backed acquirers have a “parenting advantage” in the mergers & acquisitions (M&A) market. We employ a sample of 788 PE-backed firms and a carefully matched control group of 6,652 non-PE backed peers, for which we observe the entire acquisition history over a 19-year time span. Difference-in-differences estimates suggest that PE backing induces a sizeable but short-lived boost to acquisition activity, whereas type and complexity of these acquisitions are not different. These results are consistent with the idea that PE backing enhances execution and speed in the M&A market. We find that portfolio firms benefit from this acquisition boost through improved valuations and margins on average. The extent to which this holds true, however, depends on the institutional setting of the PE owner. When there is not enough time for learning gains due to an approaching end of the fund lifetime, or when knowledge cannot diffuse due to limited attention of the PE owner, acquisitions may even be detrimental. >more

COVID-19 RECOVERY: BACK TO WORK

STUDIES > Performance

Bain & Company - Recoveries have always mattered in business. Some of the biggest shifts in market share occur coming out of downturns, when new industry leaders — and new industries — often emerge. Rarely, though, has recovery meant putting people’s lives at risk. The post-Covid-19 world will accelerate some existing trends and create new ones, and all business models will have to evolve in order to grow and thrive. But there’s no way to accurately predict the coming year, and it’s a dangerous mistake to rely too heavily on forecasts, which have to be complemented with highly adaptive and resilient business models. >more

PRIVATE EQUITY PANEL Spring 2020

STUDIES > Alternative Investments

CMS Hasche Sigle / FINANCE - For the Private Equity Panel, the FINANCE editorial team, together with the law firm CMS Hasche Sigle, interviews senior investment managers from more than 50 leading private equity houses in Germany three times a year about their current market assessment. The Corona crisis has left deep scars on the German mid-market private equity market, and the leveraged finance and private equity M&A markets have collapsed. But there is also a ray of hope. >more

COVID-19: INDIVIDUELLE AUSWIRKUNGEN AUF DEUTSCHE SCHLÜSSELINDUSTRIEN

STUDIES > Performance

Andersch - This publication reviews consequences of the C-19 pandemic for German key industries. For each sector, it discusses how supply chains and sales are affected as well as interdependencies with other branches and macroeconomic developments. The outcome is a detailed projection of how soon sector recovery is possible contingent on several economic scenarios. >more

UPDATE CAPITAL MARKET DATA

We updated the capital market data (Betas, Multiples, Returns) as to April 15, 2020. For data access, you must be a basic finexpert member. In addition, premium members have access to the archive for our capital market data from 2007 onwards. >more

FINEXPERT COMMUNITY

We welcomed our 2000th member! (March 2020) >more

GERMAN TAKEOVER REPORT 2020

finexpert | ValueTrust
3 Market Overview
11 Capital Market Reaction
15 Statements & Fairness Opinions
21 Success Rates
27 Takeover Case Study: OSRAM Licht AG
30 Transaction Details 2019
The Report covers covers all takeover offers and delisting tender offers of the year 2019 according to the German takeover code WpÜG and provides extensive information on relevant variables like bid types, premia offered, market reaction of target’s and (if available) on bidder’s stock prices. In addition, our extensive database allows to compare last year´s figures of these variables against the moving average of the preceding years and thus to highlight trends and long term developments. Finally, the finexpert German takeover report contains a unique and extensive analysis of fairness opinions and statements of management and supervisory board of the target company (§27 WpÜG), allowing for a detailed analysis of the relationship of these factors upon target stock price reaction and success rates of the takeover bid. Along with the “traditional” success definitions of takeover offers, we analyse an alternative success measure that takes potential bidder toeholds into account. Our results reveal high public M&A activity in 2019 with a large number of offers many of which were unsuccessful. None of the offers’ volume exceeded EUR 5bn, and the takeover offer of EP Global Commerce VI GmbH to the shareholders of Metro AG was the largest (EUR 4.8bn). Most of the bids were launched by foreign investors. This report contains a detailed description of events surrounding the takeover attempts for OSRAM Licht AG from a joint entity of private equity investors: Bain Capital, and Carlyle Group, and later from an Austrian company ams AG. >more

TUTORIALS > Valuation Video QoD23

Questions of doubt in corporate valuation QoD#23: Is there something wrong with unicorn valuation?

Bernhard Schwetzler
This video highlights potential flaws from applying simple post money valuation metrics on growth companies in VC financing rounds: Ignoring special cash flow rights like liquidation preferences yields significant overvaluation.(November 10, 2019). >more (videoarchiv QoD#1-23

RESEARCH PAPERS > Corporate Valuation

SAME, SAME BUT DIFFERENT: HOW PREFERENTIAL CLAIMS SKEW RETURNS OF VENTURE CAPITAL INVESTMENTS

Julian Kaboth, Arnd Lodowicks, Maximilian Schreiter, and Bernhard Schwetzler
2019
Venture capital often involves complex equity contracts, which affect the allocation of cash flows among shareholdings at an exit liquidation. To facilitate economic impact analysis, we structure exit relevant preferential rights by their economic impact in a two-dimensional framework. Based hereon, we provide a model that allows to assess ex-ante value of such shares. We apply our model to a selected sample of ventures and find an average overvaluation on a share class basis of 22.1% (median 23.9%), where overvaluation is particularly severe for common and early-on investments. >more

TOP 3 Studies

GERMAN TAKEOVER REPORT 2021
> more
WHAT TO WATCH IN 2021
> more
WARUM VIELFALT IN PE-PARTNER-TEAMS ZU BESSEREN ERGEBNISSEN FÜHRT
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>more for Youtube Channel "Questions of Doubt in Corporate Valuation"

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