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3. Trainings and Tutorials for Valuation Purposes 

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SEMINARS VALUATION | UNTERNEHMENSBEWERTUNG >Finanzplanung | DCF | LBO Strukturierung | Merger Modellierung

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NEWS: TUTORIALS > Valuation Video QoD10

Question of doubt in corporate valuation QoD#10: Which models are able to include fading growth into terminal value calculation? (Part II) (Bernhard Schwetzler)

This second video on the topic analyzes the case of fading excess returns combined with fading assets (invested capital) and shows how to implement this case into some standard valuation equations for terminal value calculation. (September 21, 2018). (videoarchiv) >more

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NEWS: STUDIES > Jobs | Opportunities

UPDATE ARBEITSRECHT SEPTEMBER 2018

CMS Hasche Sigle regularly publishes updates and news concerning the German labor law. Amongst others, this edition features updates on remuneration trends and legal principles. >more

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NEWS: RESEARCH PAPERS > M&A

DO PRIVATE EQUITY FIRMS PAY FOR SYNERGIES?

Benjamin Hammer, Nils Janssen, Denis Schweizer, and Bernhard Schwetzler
2018
Stylized facts suggest that strategic acquirers can pay for synergies, while private equity (PE) firms cannot because of the missing operating fit with the portfolio company. However, if PE firms initiate buy-and-build strategies, there is potential for an operating fit between the portfolio firm and its add-on acquisitions. Thus, synergistic value could be priced in at entry. We analyze the pricing of 1,155 global PE buyouts and find strong support for a valuation effect from buy-and-build strategies. Our results indicate that PE sponsors pay a premium of up to 47% at entry when the portfolio company acquirers add-ons in the same industry within a two-year time window after the buyout. Consistent with bargaining power theory, the effect strengthens when the portfolio firm has acquisition experience, and when the PE sponsor faces pressure to invest because of unspent fund capital (referred to as “dry powder”) or deal competition. These findings remain robust after addressing alternative explanations, endogenous selection, and reverse causality. They have important implications for the literature on strategic versus financial bidders in takeovers. >more

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MULTIPLE REPORT 2018

finexpert | ValueTrust
The multiple report concentrates on market multiples of the German stock market (the forthcoming third market report will finally concentrate on industry betas and the Svensson curve). The multiple report gives a comprehensive overview over the market valuation of different indices of the German Prime All Share. It combines 5 different multiple definitions, 4 market indices, 15 industry indices, 3 aggregation methods and 2 different time dimensions (trailing vs. forward). Our data coverage starts in 2010 to ensure that data can be used for historical valuations and to exhibit time series trends. Detailed sector compositions for previous valuation data and further information on valuation as well as capital market issues are available at finexpert.info.  (Teaser) >more

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UPDATE CAPITAL MARKET DATA

We updated the capital market data (Svensson-Yield Curve) as to September 3, 2018. For data access, you must be a basic finexpert member.>more

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FINEXPERT COMMUNITY

We welcomed our 1.700th member! (August 2018) >more

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TUTORIALS > Valuation Video QoD7

Question of doubt in corporate valuation QoD#7: Gordon-Shapiro model or value driver model for terminal value caclulation? (Bernhard Schwetzler)

This video introduces the "value driver model" as an extension of the Gordon-Shapiro (GS) model for terminal value calculation. It discusses advantages and problems when comparing it against the GS model.
(August 31, 2018). (videoarchiv) >more

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STUDIES > Performance

WELCHEN WERT HAT DER BITCOIN?

Deloitte
Bitcoin has the potential to fundamentally change the financial industry, trade and business models of many companies. But how do Bitcoin and Blockchain work exactly? And what do companies need to know in order to benefit from it? The Deloitte experts explain the functionality and possibilities of the virtual currency. >more

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STUDIES > Macro

HOW MUCH WILL A TRADE WAR HURT YOUR COMPANY?

The Boston Consulting Group
The trade dispute between the US and China continues to escalate. Tariffs of 25% have been imposed or announced on $50 billion of imports from China, and tariffs on a further $200 billion are now being reviewed. With some of the world’s largest trading relationships embroiled in an escalating trade conflict, how high might the cost to the global economy and to your firm be? >more

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TUTORIALS > Valuation Video QoD6

Question of doubt in corporate valuation QoD#6: Does the Gordon-Shapiro growth model fully capture inflation? (Bernhard Schwetzler)

This video discusses the relation between growth and inflation. It is shown that under consistent nominal valuation there is no need to "add" an additional growth factor caused by inflation. Also a recent critique on the Gordon-Shapiro model is discussed and rejected
(August 24, 2018). (videoarchiv)  >more

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TUTORIALS > Valuation Video QoD5

Question of doubt in corporate valuation QoD#5: Are there sanity checks for the growth assumptions in the terminal value calculation? (Bernhard Schwetzler)

The assumption about the permanent growth rate in the terminal value calculation is a standard battlefield in transaction negotiations. This video is first introducing the so called Gordon-Shapiro model for terminal value calculation and then shows that it is a powerful tool to check for reasonable growth assumptions and to sort out unreasonable ones. (Sorry for this video being so long; if you already know the Gordon-Shapiro model and are only interested in the sanity check you may jump to 16:40..)
(August 10, 2018). (videoarchiv)  >more

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TUTORIALS > Valuation Video QoD4

Question of doubt in corporate valuation QoD#4: Are pension reserves part of the equity bridge in DCF valuation? (Bernhard Schwetzler)

Including (unfunded) internal pension liabilities into DCF valuation not trivial. This video discusses potential pitfalls and shows consistent treatments of pension reserves in corporate valuation with respect to Free Cash flow, WACC and Net Debt
(August 3, 2018). (videoarchiv)  >more

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NEWS: STUDIES > Performance

BLOCKCHAIN IN FINANCIAL SERVICES – MEHR ALS NUR EIN HYPE?

Ernst & Young
When it comes to blockchain technology, German banks, insurers and asset managers tend to wait and see. Hardly any company aims to lead the way as a pioneer in the field of blockchain. Most people also want to keep their hands off cryptocurrencies. These are the results of a PwC survey among managers of 300 banks, insurers and asset managers. >more

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TUTORIALS > Valuation Video QoD3

Question of doubt in corporate valuation: Cost of capital of pension reserves (Bernhard Schwetzler)

In Germany firms are allowed to keep pension liabilities for their employees and pensioneers (and the corresponding assets) on their own books. For some big firms these liabilities make up a billions absolute amount and a significant fraction of the firm´s balance sheet. This video tackles the question of the cost of capital of this funding source. There are significant differences in the approaches to estimate these cost and the results they deliver. The video shows that these differences are due to different (implied) assumptions on the substitution of cash wage by the annual service cost of the pension liability. You may use the pension´s interest cost shown in the P&L only, if you assume that the service cost are 100% substituting cash wage (July 27, 2018). >more

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NEWS: STUDIES > Macro

THE GLOBAL FINANCIAL AND MONETARY SYSTEM IN 2030

World Economic Forum
The Global Future Council on Financial and Monetary Systems published this report singling out three key aspects of the risks and challenges associated with the two seemingly opposed forces of decentralization and integration, to which the international financial architecture will need to adapt: 1) regulatory challenges; 2) the transformation of the financial system through digitization; and 3) current macroeconomic risks. >more

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TUTORIALS > Valuation Video QoD2

Question of doubt in corporate valuation: Relevering/delevering beta factors: gross debt or net debt leverage? (Bernhard Schwetzler)

When transfering industry betas on individual firms in the same industry a standard adjustment, called "de-levering and re-levering" is performed to account for potential differences in the capital structure. This video tackles the question on whether this adjustment should be made based on the net debt to equity ratio or based on the gross debt to equity ratio. (July 20, 2018) >more

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STUDIES > Corporate Finance

WHAT REALLY MATTERS FOR A PREMIUM IPO VALUATION?

The Boston Consulting Group | HHL
Planning for an initial public offering is a lot like planning a wedding. Some factors that affect success, such as investor sentiment, are beyond a company’s control, while others, such as the offer price, can only be dealt with shortly ahead of the big day. But many others should be addressed proactively with thorough planning over an extended period. Indeed, new research by BCG finds that some of the most important factors driving a premium IPO valuation are those for which preparation should begin well before the opening bell rings. >more

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STUDIES > M&A

CHINESISCHE UNTERNEHMENSKÄUFE IN EUROPA: EINE ANALYSE VON M&A DEALS 2006-2018

Ernst & Young
The number of Chinese acquisitions in Europe continues to decline: In the first half of this year, there were 12 percent fewer takeovers and investments in Europe than in the same period last year. The absolute number fell from 126 to 111, and the investment volume even more than halved: From 31.6 to 14.9 billion US dollars. >more

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UPDATE CAPITAL MARKET DATA

We updated the capital market data (Betas, Multiples, Returns) as to July 15, 2018 for basic and premium members. >more
Premium members have additional access to our data archive (Multiples, Betas, Returns, Yield Curve) containing data as of 2007.

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TUTORIALS > Valuation Video QoD1

Question of doubt in corporate valuation: WACC and target capital structure

Bernhard Schwetzler has started a Youtube channel titled „questions of doubt in corporate valuation”. In homemade video clips of max. length of 10 minutes he discusses and answers technical questions related to corporate valuation that may pop up in the day to day business of transaction advisors.  The first video in this sequence is discussing the question “WACC and target capital structure – gross debt or net debt?” (July 13, 2018) >more

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STUDIES > Performance

BLOCKCHAIN FOR FINANCE

Deloitte
Blockchain for Finance is a practical guide for finance organizations that want to understand options for blockchain and make effective decisions about moving forward. It features more than a dozen Frequently Asked Questions finance teams can use to make sense of blockchain technology, as well as a high-level roadmap for adoption. It also includes a seven-point checklist for CFOs who are thinking about embarking on the blockchain journey. >more

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STUDIES > Performance

EUROPEAN PRIVATE BUSINESS SURVEY 2018

PwC surveyed 2,447 entrepreneurs from 31 European countries for the European Private Business Survey, including 371 from Germany. The results indicate that the shortage of skilled workers is slowing down European economic growth and is becoming an ever greater problem for SMEs. And not only that: Overwhelming regulation and bureaucracy, the sluggish expansion of the digital infrastructure, the uncertainties caused by the Brexit and increasing protectionism are big concerns for medium-sized companies. >more

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STUDIES > Performance

VENTURE CAPITAL: TREIBSTOFF FÜR INNOVATIONEN, WACHSTUM UND WETTBEWERBSFÄHIGKEIT

Roland Berger Strategy Consultants
There is not enough venture capital in Germany. This means that there is a lack of funds for start-ups and innovations, which are indispensable for surviving the competition with other technology locations. In this study, Roland Berger, the Internet Economy Foundation and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften show how critical the situation is and what can be done. >more

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STUDIES > Corporate Finance

UNDERSTANDING THE BLOCKCHAIN REVOLUTION!

Deutsche Bank Research
When reporting on bitcoin, blockchain and cryptocurrencies these days, the speaker is faced with the question: Shall he discuss the technology or move directly to the presentation of the social and economic implications? Conveying a complex technology in just a few minutes is risky. In Alice's rabbit burrow, the speaker and his audience quickly lose track of each other. But the audience may also be left clueless by the direct presentation of the potentially revolutionary implications. In the face of this dilemma and the complexity of cryptosystems, we will try to shed light on the issue by means of metaphors. >more

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STUDIES > Jobs | Opportunities

UPDATE ARBEITSRECHT JUNE 2018

CMS Hasche Sigle regularly publishes updates and news concerning the German labor law. Amongst others, this edition features updates on temporary contract extensions after reaching regular age limits as well as the employer's liability when refusing to reintegrate employees. >more

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STUDIES > Corporate Finance

ANATOMY OF AN IDEAL IPO CANDIDATE

The Boston Consulting Group
This article — the first in a series exploring the practicalities of going public — looks at the anatomy of an ideal IPO candidate and explores what is needed to prepare for life in the glare of the capital markets. Subsequent articles will examine what drives a high IPO valuation, what percentage of equity to float, whether and how to raise fresh capital, and other questions surrounding a decision to go public. >more

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RESEARCH PAPER > Corporate Finance

BEYOND FINANCING: CROWDFUNDING AS AN INFORMATIONAL MECHANISM

Jordana Viotto da Cruz
Using a unique dataset built with publicly available data from Internet-based sources, and after controlling for alternative explanations, we empirically show that even when not successful on crowdfunding, thus not accessing capital, project owners may still decide to release the product in the market if contributions suggest positive valuation of the “crowd”. >more

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STUDIES > Alternative Investments

EUROPEAN PRIVATE EQUITY ACTIVITY REPORT 2017

Invest Europe
This annual survey, undertaken on behalf of Invest Europe, collects comprehensive and robust activity data on fundraising, investment and divestment from about 1,250 private equity and venture capital firms in Europe. The 2017 statistics cover 89% of the €640bn capital under management on the European market. >more

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UPDATE CAPITAL MARKET DATA

We updated the capital market data (Betas, Multiples, Returns) as to April 15, 2018 for basic and premium members. >more
Premium members have additional access to our data archive (Multiples, Betas, Returns, Yield Curve) containing data as of 2007.

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STUDIES > Accounting

THE OUTLOOK FOR GLOBAL TAX POLICY IN 2018 Ernst & Young

Global and US tax reform, and the adoption of numerous international tax policy changes in 2018, are providing a catalyst for countries to pursue tax competitiveness in new and innovative ways. This is according to the EY The outlook for global tax policy in 2018, which combines insights and forecasts from EY tax policy professionals in 41 jurisdictions worldwide. >more

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GERMAN TAKEOVER REPORT 2018

finexpert | ValueTrust
The finexpert-ValueTrust German takeover report 2018 covers all takeover bids according to the German takeover code WpÜG of the year 2017 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. After discussing potential shortcomings of “traditional” success definitions of takeover offers in this report we introduce a new success measure that takes potential bidder toeholds into account and perform additional analyses. Our results indicate 2017 as a year with a lower number of offers, but due to one large bid, with significantly above average bid volume. This is due to the public exchange offer to Linde AG made by Linde PLC preceding the merger between Linde and Praxair. Premium offered and target CARs were below average in 2017. This report contains a detailed description of events surrounding the takeover offer for STADA Arzneimittel AG, where Value Trust was acting as financial advisor.  (Teaser) >more

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STUDIES > Corporate Finance

FINANCING THE DEEP TECH REVOLUTION

European Investment Bank
The European Investment Bank (EIB), with Oliver Wyman’s support, has developed and published a study on “Financing the Deep Tech Revolution”, identifying the obstacles to access-to-finance for deep tech companies as well as recommending policy measures to address them. >more

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STUDIES > M&A

RISING TENSION: ASSESSING CHINA'S FDI DROP IN EUROPE AND NORTH AMERICA

Baker & McKenzie
In 2017, China's global outbound investment dropped for the first time in more than a decade as policy changes in China and host economies cooled M&A activity and created a shift in the industries and geographies targeted by Chinese investors. This report provides insight into how and why China’s outbound investment patterns are changing in the world's two highest income regions: Europe and North America. >more

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STUDIES > Performance

BANKING ON BLOCKCHAIN: A VALUE ANALYSIS FOR INVESTMENT BANKS

Accenture
Many analysts liken the disruptive potential of blockchain's distributed ledger technology — a new type of database system — to that of the Internet. In addition to reshaping the financial infrastructure as we know it, this research pinpoints where blockchain will have the biggest impact on a bank's bottom line. To conduct the study, Accenture joined forces with McLagan, a business unit of Aon plc, and world-class capital markets benchmarking provider. >more

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STUDIES > Macro

GUIDE TO THE MARKETS - Q2 2018

J.P. Morgan
Updated each quarter, the Guide to the Markets illustrates a comprehensive array of market and economic trends and statistics for Europe. This includes information about equities, fixed income and other asset classes as well as macroeconomic analyses. >more

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STUDIES > Performance

SMALL BUSINESS ECOSYSTEMS: BANKS' NEXT CHALLENGE

Bain & Company
It’s not easy for small companies to grind through the basic operations of running a business. Owners and managers spend substantial time navigating separate platforms for banking, enterprise resource planning, human resources and other activities, each with its own spreadsheets of critical information. Retail merchants must sell through multiple channels, including the online platforms offered by the Rakutens, Alibabas and Amazons of the world. And small and medium-sized enterprises (SMEs) selling online are heavy users of payments technology. How can bankers help contain this sprawl? They can devise a simple, easy-to-use package that would integrate banking functions with, say, an external partner’s accounting and payroll software. So there is a big world beyond core banking services. But do banks have the credibility and the right partners? >more

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STUDIES > Jobs | Opportunities

UPDATE ARBEITSRECHT MÄRZ 2018

CMS Hasche Sigle regularly publishes updates and news concerning the German labor law. Amongst others, this edition features updates on the general equality law and on dismissal protection issues. >more

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STUDIES > Performance

BANKENREPORT DEUTSCHLAND 2030

Oliver Wyman
The German banking system faces radical changes: In 10-15 years, Germany will only have around 150 to 300 banks with sustainable and successful business models, compared to today's 1,600. Competition is increasing and more and more foreign banks, fintechs, market infrastructure providers and global technology groups are entering the German banking business. At the same time, digitization is making customers increasingly demanding. >more

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STUDIES > Alternative Investments

EUROPEAN PRIVATE EQUITY OUTLOOK 2018

Roland Berger Strategy Consultants
The private equity industry anticipates more M&A transactions on the part of PE firms in 2018 than last year, confident that the favorable economic outlook will offset economic uncertainties like the ongoing Brexit negotiations. This is among the conclusions reached by the new "European Private Equity Outlook 2018", a study for which Roland Berger interviewed a cross-section of private equity professionals from around Europe. >more

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NEWS: FINEXPERT COMMUNITY

We welcomed our 1.600th member! (February 2018) >more

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NEWS: STUDIES > Jobs | Opportunities

UPDATE ARBEITSRECHT MÄRZ 2018

CMS Hasche Sigle regularly publishes updates and news concerning the German labor law. Amongst others, this edition features updates on the general equality law and on dismissal protection issues. >more

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STUDIES > Corporate Finance

EFFIZIENZ DER KREDITPROZESSE IN DEUTSCHEN KREDITINSTITUTEN 2017

PwC
How efficient are credit processes in German banks? What are the implications of digitization in the lending business? Which distribution channels are still needed for lending? This PwC study addresses these and other questions. The results show that developments in retail and wholesale banking are far apart. And fewer houses than expected are already implementing a viable digitization strategy. Only a missed opportunity - or at least a danger for a successful future? >more

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STUDIES > Performance

DEUTSCHLANDS BANKEN 2017: METAMORPHOSE IM LAUFENDEN BETRIEB

Bain & Company
The structural change in the banking sector continues with increasing speed: on average, 36 bank branches close down operations every week in Germany and one bank even leaves the market. At the same time, the number of employees in the banking industry is falling by more than 400 per week. >more

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STUDIES > M&A

CHINESISCHE UNTERNEHMENSKÄUFE IN EUROPA: EINE ANALYSE VON M&A DEALS 2006-2017

Ernst & Young
In 2017, Chinese buyers invested a record amount of money in German companies with the total M&A volume amounting to just under 13.7 billion dollars. At the same time, the number of takeovers by Chinese investors declined by 21 percent to 54 transactions. >more

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STUDIES > Macro

THE GLOBAL RISKS REPORT 2018

World Economic Forum
Each year the Global Risks Report works with experts and decision-makers across the world to identify and analyze the most pressing risks that we face. As the pace of change accelerates, and as risk interconnections deepen, this year’s report highlights the growing strain we are placing on many of the global systems we rely on. >more

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STUDIES > Alternative Investments

STARTUP-BAROMETER DEUTSCHLAND: JANUAR 2018

Ernst & Young
German start-ups attracted record amounts of money in 2017: the total value of investments climbed from 2.3 to 4.3 billion euros - an increase of 88 percent. Especially very large deals with a volume of more than € 100 million explain the 2017 surge. Such blockbuster deals have been entirely missing in the previous year. >more

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BETA REPORT 2017

finexpert | ValueTrust
The beta report contains cost of capital developments over the last year, 1 and 2 Year Beta estimates since 2015 for the Prime All Share indices as well as Yield Curve estimates. The report is meant to be a comprehensive reference for cost of capital estimates where finexpert users can find sector-specific information for valuation purposes. We also provide an update about the newest academic research on cost of capital and related topics. The paper that we present discusses the use of gross versus net debt for unlevering/re-levering the beta factor (Teaser). >more

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STUDIES > Macro

GUIDE TO THE MARKETS - Q1 2018

J.P. Morgan
Updated each quarter, the Guide to the Markets illustrates a comprehensive array of market and economic trends and statistics for Europe. This includes information about equities, fixed income and other asset classes as well as macroeconomic analyses. >more

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STUDIES > M&A

STRATEGIC ALLIANCES: A REAL ALTERNATIVE TO M&A?

KPMG
In this article KPMG looks at the evolving strategic alliance landscape, considers why some strategic alliances succeed and some fail, and highlights the key steps to an effective partnership that meets both parties’ interests. >more

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TRAINING > Tutorials

Zwei Probleme der Unternehmensbewertung: Kapitalstruktur und Wachstum

Prof. Dr. Bernhard Schwetzler
This video shows a presentation of Professor Bernhard Schwetzler at the 11th annual meeting of the EACVA about common issues in corporate valuation: capital structure and beta adjustments with respect to the use of gross or net debt, as well as growth and the "steady state" assumption. >more

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STUDIES > Alternative Investments

PRIVATE EQUITY UND LEVERAGE IN DEUTSCHLAND - AKTUELLE ERGEBNISSE

HHL Leipzig Graduate School of Management
This presentation by Prof. Dr. Bernhard Schwetzler reports the results of two recent studies on leverage and default probabilities of private equity portfolio companies in Germany. The results indicate that static leverage ratios such as debt to total assets increase moderately after the PE entry, whereas dynamic measures such as debt to EBITDA are largely unaffected. Further results suggest that the business model of the PE firm, in particular its industry specialization, is crucial for default probabilities. >more

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MULTIPLE REPORT 2017

finexpert | ValueTrust
The multiple report gives a comprehensive overview over the market valuation of different indices of the German Prime All Share. It combines 5 different multiple definitions, 4 market indices, 15 industry indices, 3 aggregation methods and 2 different time dimensions (trailing vs. forward). Our data coverage starts in 2009 to ensure that data can be used for historical valuations and to exhibit time series trends. Detailed sector compositions for previous valuation data and further information on valuation as well as capital market issues are at finexpert available.(Teaser) >more

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FINEXPERT COMMUNITY

We welcomed our 1.500th member! (July 2017) >more

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VALUETRUST MUNICH | VIENNA

Marion Swoboda-Brachvogel joined ValueTrust on April 1st, 2017, as a Director and will co-head the office together with Prof. Dr. Christian Aders. Marion Swoboda-Brachvogel will be responsible for the expansion of ValueTrust’s Vienna office und be the local contact for the clients in Austria.>more

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GERMAN TAKEOVER REPORT 2017

finexpert | ValueTrust
The finexpert-ValueTrust German takeover report 2017 covers all takeover bids according to the German takeover code WpÜG of the year 2016 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  yxfigures 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. Our results indicate 2016 as a year with an average number of offers, but with above average premia and bid volume. The latter is due to the extraordinary merger attempt of Deutsche Börse and London Stock Exchange. Market reaction on the offer announcements was on average 20.8% on the targets (-+1 day-CAR). Our Fairness Opinion analysis reveals an increasing importance of consultants as providers. (Teaser) >more

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FINEXPERT COMMUNITY

We welcomed our 1.400th member! (February 2017) >more

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CAPITAL MARKET REPORT 2016

finexpert | ValueTrust
The capital market report contains cost of capital developments over the last year, 1 and 2 Year Beta estimates since 2014 for the Prime All Share indices as well as Yield Curve estimates. The report is meant to be a comprehensive reference for cost of capital estimates where finexpert users can find sector-specific information for valuation purposes. We also provide an update about the newest academic research on cost of capital and related topics. The three papers that we present discuss the difficulties of finding the right models for cost of capital assessments, the timely development of the equity risk premium and the efficiency of the market portfolio.(Teaser) >more

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RESEARCH PAPERS > Corporate Valuation

THE IMPACT OF TERM STRUCTURE AND TERM TRANSFORMATION STRATEGIES ON THE CORPORATE VALUE OF BANKS – A COMPARISON BETWEEN CONTROLLING-BASED VALUATION CONCEPTS AND DCF-MODEL

Bernhard Schwetzler
2016
This paper compares two different concepts for bank valuation: a controlling-based concept splitting the bank into three parts (credit-, deposit-, and treasury bank) and valuing them separately, against a standard DCF-Flow to Equity valuation model. The controlling-based concept allows to separate current realized and future expected interest income generated by term transformation, i.e. by exploiting differences between different maturities via maturity mismatch of assets and liabilities, from the bank´s excess interest income (or interest savings) against market interest rates with the same TM. The results show that depending on the shape of the term structure and the term transformation strategy chosen by the bank´s management significant differences between the corporate values derived by the two valuation models may occur when being applied upon the same bank. >more

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FINEXPERT COMMUNITY

We welcomed our 1.300th member! (September 2016) >more

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MULTIPLE REPORT 2016

finexpert | ValueTrust
The multiple report concentrates on market multiples of the German stock market and gives a comprehensive overview over the market valuation of different German capital market and industry indices. It combines 5 different multiple definitions, 4 market indices, 15 industry indices, 3 aggregation methods and 2 different levels of timeliness (trailing and forward). Our data coverage starts in 2009 and can therefore be used for historical valuations. Detailed sector compositions for previous valuation data and further information on valuation as well as capital market issues are available at finexpert.info. Finally our research corner provides a summary of two recently published papers.(Teaser) >more

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STUDIES > Corporate Finance

Valuation of innovative business models

Bernhard Schwetzler
A talk on the valuation of innovative business models given at the annual meeting 2016 German Academic Association for Business Research (VHB) at the technical university of Munich TUM. (in German) >more

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FINEXPERT GERMAN TAKEOVER REPORT 2016

The  finexpert - ValueTrust German takeover report 2016 covers all takeover bids according to the German takeover code WpÜG of the year 2015 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. > more (Teaser) >more

Lecture VIDEO

Tax Shields - Part 1

Bernhard Schwetzler
We´ve added a tutorial video on the impact of debt related tax shields on PE-performance. An example shows that cutting interest tax deductibility may even increase PE´s IRR (June 2013). >more

TOP 3 Studies
VENTURE CAPITAL: TREIBSTOFF FÜR INNOVATIONEN, WACHSTUM UND WETTBEWERBS- FÄHIGKEIT > more
UPDATE ARBEITSRECHT SEPTEMBER 2018 > more
THE GLOBAL FINANCIAL AND MONETARY SYSTEM IN 2030 > more

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