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STUDIES | CORPORATE FINANCE

European Investors

Alvarez & Marsal

ACTIVIST INVESTORS IN EUROPE: WHO WILL THEY TARGET NEXT?

Shareholder activism directed at European companies is a growing and evolving reality for the Boards of quoted corporates. When such activism turns into a public campaign by one or more investors, there can be very significant financial and reputational risks for the targeted corporate and its Board. A&M has developed the “A&M Activist Alert” or “AAA” to predict which corporates will be the next to be targeted. The AAA is the most comprehensive statistical analysis of its kind. The analysis focuses on 1,473 corporates with a market capitalization of US$200 million or more, listed and headquartered in the U.K., Germany, France, Scandinavia, Switzerland, Benelux, Italy and Spain. The resulting predictive model successfully predicted the majority of corporates publicly targeted by activists since January 2015. The report is published twice yearly. >more


Future of Equity Capital Markets

PwC

CAPITAL MARKETS IN 2030: THE FUTURE OF EQUITY CAPITAL MARKETS

The four most popular stock exchanges that companies are considering for an Initial Public Offering (IPO) are the two New York stock exchanges (New York Stock Exchange and Nasdaq) in 1st and 3rd place, the London Stock Exchange in 2nd place and the Hong Kong Stock Exchange in 4th place. With the Indian stock exchanges (Bombay Stock Exchange and National Stock Exchange of India), a representative of the up-and-coming economic markets makes the leap into the top 5. Deutsche Börse is ranked 8th. With respect to IPOs in 2030, the top 5 remains unchanged - only Nasdaq and London Stock Exchange change places. >more


EIB Investment Report 2018/2019

European Investment Bank

EIB INVESTMENT REPORT 2018/2019: RETOOLING EUROPE’S ECONOMY

The Investment Report, issued annually by the European Investment Bank, provides a comprehensive overview and analysis of investment and the financing of investment in the European Union. It combines the exploration of investment trends with in-depth analysis, focusing especially on the drivers and barriers to investment activity. The report leverages on a unique set of databases and survey data, including EIBIS, an annual survey of 12 500 firms in Europe, which focuses on their assessment of investment and investment finance conditions, and which allows analysis with firm balance sheet information. >more


European Non-Bank Lending

Allen & Overy

NON-BANK LENDING IN THE EUROPEAN UNION

Non-bank lending in the European Union is becoming an ever more significant source of financing for business. In light of its increasing importance to Europe’s economy, policymakers are re-evaluating their approach to this market and considering whether the existing regulatory framework remains appropriate. >more


German SMEs and Banking

KfW Research

MITTELSTAND MIT GROßER TREUE ZUR HAUSBANK

The link between German SMEs and the banking sector has traditionally been strong. 93% of all enterprises have a primary credit institution. This relationship is very stable with an average duration of 20 years. Furthermore, the KfW SME Panel shows that companies seek personal contact: Around 65% of SMEs visited a bank branch personally at least once in 2017, the annual average being around once a quarter. In general, it is clear that diversification increases with company size. Larger SMEs maintain more banking relationships and are less focused on their house banks when looking for loans. >more


Working Capital

PwC

WORKING CAPITAL MANAGEMENT IM WANDEL

For the first time in five years, the working capital performance of companies in the DACH region shows a positive trend: working capital has fallen by almost one day - from 52.4 days in 2016 to 51.5 days in 2017. The reason for this improvement is the stronger performance on the asset side of corporate balance sheets: The companies surveyed were able to reduce their inventory and receivables ranges by an average of 1.7 and 0.6 days respectively. However, the analyzed companies still release too little liquid funds for investments. >more


European Leveraged Finance

White & Case

TEN YEARS ON: THE SURPRISING RESILIENCE OF EUROPEAN LEVERAGED FINANCE

The European leveraged finance market paused for breath in 2018 after two feverish years, but a combination of new money issuances for LBOs and the rise of CLOs has kept the market stable. Investors, far from eschewing the riskier end of the lending spectrum, have been tempted up the yield curve, seeking out higher returns than those on offer in safer markets where quantitative easing has depressed yields. Encouraged by investors' desire for yield, riskier issuers/borrowers have started to demand looser terms on loans, knowing that investors, needing to deploy capital in competitive markets for deal allocations, would be more likely to accept. >more


Innovation Financing

KfW

DIE FINANZIERUNG VON INNOVATIONEN UND INVESTITIONEN IN MITTELSTÄNDISCHEN UNTERNEHMEN IM VERGLEICH

Many companies complain that high costs, high risks and financing difficulties hamper their innovation activities. This study examines whether there are differences in the financing of innovation and investment and whether these differences result from limited financing opportunities. In fact, the financing of innovation differs significantly from that of investment. The findings confirm theoretical considerations that specific features of innovation (such as uncertainty about success, difficulties in valuation, lack of collateral) prevent external financing, particularly through bank loans. >more


Shareholder 2018

Lazard

ANNUAL REVIEW OF SHAREHOLDER ACTIVISM - 2018

Lazard's Review of Shareholder Activism is a compilation and analysis of data on key activism trends globally. The review shows that 2018 was a record-breaking year for activism, both by number of companies targeted and number of first-time activists. >more


Supervisory Board

The Boston Consulting Group

BCG-AUFSICHTSRATSSTUDIE: AKTIV MITGESTALTEN STATT NUR KONTROLLIEREN

Dynamic changes in industries and markets present supervisory boards with new challenges. What effects do the new framework conditions have on the main tasks and the structure of the Supervisory Board's work? BCG surveyed 120 supervisory boards of large companies in Germany and Austria. The BCG Report shows that supervisory boards not only want to control change, but also actively shape it. New competencies and work processes are needed. >more


Working Capital

PwC

WORKING CAPITAL REPORT 2018/19: NAVIGATING UNCERTAINTY

Cash is the lifeblood of any company. It’s more important than ever for businesses to optimise this fundamental aspect of financial performance if they’re to maintain a steady course in these uncertain times. Given that working capital is the cheapest source of cash, nothing is more vital than having a cash culture and good liquidity on board. If all the companies in this PwC study were to improve their working capital efficiency to the level of the next performance quartile, this would represent a cash release of €1.3tr. This would be enough for global companies to boost their capital investment by 55% – without needing to access additional funding or put their cash flows under pressure. >more


IPO 2018

Kirchhoff Consult

IPO-STUDIE 2018

Despite the high volatility on the capital market, 2018 was one of the best years for IPOs in Germany. This is the result of the annual IPO study conducted by the Hamburg agency for financial and corporate communications Kirchhoff Consult. According to this study, the number of IPOs (Initial Public Offering) in the Prime Standard stock market segment doubled to 16 compared to the previous year and thus reached its highest level since 2007. >more


Financing of Familiy Businesses

Roland Berger Strategy Consultants

FINANZIERUNG VON FAMILIENUNTERNEHMEN IN DEUTSCHLAND

German family businesses have less debt, longer planning horizons and are more risk-averse than non-family businesses. This is the conclusion of the current study by Euler Hermes and Roland Berger. At the same time, however, they have worse financial ratios in some areas. In the upcoming years, they will need fresh capital to innovate and invest in digitization. >more


Shareholder Activism Q3 2018

Lazard

REVIEW OF SHAREHOLDER ACTIVISM – Q3 2018

Activists targeted 174 companies in the first three quarters of 2018, surpassing 169 companies targeted in all of 2017. 26% more campaigns initiated YTD over 2017 YTD, representing capital deployment of $53.8bn, in-line with 2017 YTD levels. A record 130 activists were responsible for YTD campaigns, exceeding the level for all of 2017. >more


Corporate Finance and Family Businesses

Roland Berger Strategy Consultants

FINANZIERUNG VON FAMILIENUNTERNEHMEN IN DEUTSCHLAND

Many German family businesses are successful worldwide. In financial matters, they are regarded as rather risk-averse, solidly equipped with funds and often debt-free. They are often less dependent on banks or other financial backers than comparable companies. However, this is changing because upcoming investments - including digitisation and further internationalisation of their business - exceed their financial firepower. >more


Global IPO Q3 2018

Ernst & Young

GLOBAL IPO TRENDS: Q3 2018

Ongoing geopolitical uncertainties and trade issues have continued to dampen investor enthusiasm, resulting in the number of IPOs in the first nine months of 2018 (YTD 2018) falling to 1,000 globally, an 18% decrease from YTD 2017. Despite this slowdown, YTD 2018 activity remained above the 10-year average with global IPO markets raising US$145.1b in YTD 2018, a 9% increase year-on-year. >more


Corporate Bonds

Deutsche Bank Research

NACH DER SOMMERPAUSE: US- UND EUROPÄISCHE UNTERNEHMENSANLEIHEN

Macro factors continue to play the main role in corporate bonds; fundamental data are of secondary importance. However, the macro environment has become increasingly complicated this year. At the beginning of 2018, when markets were still extremely relaxed, we felt that volatility would return and credit spreads would widen accordingly. In fact, the trend was different from what we had predicted, even though spreads are now roughly where we had expected them to be at that time. >more


German Start-ups July 2018

Ernst & Young

START-UP-BAROMETER DEUTSCHLAND: JULI 2018

German start-ups raised a total of 2.4 billion euros from investors in the first half of 2018 - seven percent less than in the previous year, when the IPO of Delivery Hero set a new record. By contrast, the transaction volume of pure risk capital investments - excluding IPOs - rose by 3.5 percent to a new high of EUR 2.2 billion in the first half of the year. >more


IPO Valuation

The Boston Consulting Group

WHAT REALLY MATTERS FOR A PREMIUM IPO VALUATION?

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


Credit Market Outlook June 2018

KfW

CREDIT MARKET OUTLOOK JUNE 2018

KfW Research has calculated that new lending to businesses and self-employed persons in Germany grew at a faster rate in the first quarter of this year than at any time since the third quarter of 2008. But now the economy has shifted down a gear. That should soon affect the momentum of new lending business as well. >more


Global IPO Trend Q2 2018

Ernst & Young

GLOBAL IPO TRENDS: Q2 2018

The risks and uncertainties from geopolitical frictions and shifting trade policies have contributed to declines in global IPO activity in Q2 2018, resulting in 660 IPOs in H1 2018, a 21% decrease from H1 2017. However, despite this slowdown, global IPO markets raised US$94.3b in the first half of 2018, a 5% year-on-year increase and the highest proceeds for the first half of a year since H1 2015. >more


Blockchain Revolution

Deutsche Bank Research

UNDERSTANDING THE BLOCKCHAIN REVOLUTION!

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


Digitization and Investor Relations

Ernst & Young

DIGITALISIERUNG IN DER INVESTOR RELATIONS PRAXIS

How has digitization changed capital markets and the investor relations environment? In this study, EY summarizes the results of a joint study with the German Investor Relations Association. >more


IPO Candidate

The Boston Consulting Group

ANATOMY OF AN IDEAL IPO CANDIDATE

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


Divesting and Future Growth

Ernst & Young

HOW CAN DIVESTING FUEL YOUR FUTURE GROWTH? GLOBAL CORPORATE DIVESTMENT STUDY 2018

The annual EY study reveals that divestments are now a strategic imperative for senior corporate executives in every sector, and that technology – both as threat and an opportunity – is influencing their thinking. >more


Credit Market Outlook March 2018

KfW

CREDIT MARKET OUTLOOK MARCH 2018

New lending to enterprises and self-employed persons gained momentum once again at the end of the year after developing vigorously in the preceding quarters. The result for the year 2017 is therefore positive as well. All in all, lending increased by 5 % last year. >more


Shareholders and DAX companies

Ernst & Young

WEM GEHÖRT DER DAX? ANALYSE DER AKTIONÄRSSTRUKTUR DER DAX-UNTERNEHMEN 2017

Foreign investors increased their stakes in DAX companies last year: At the end of 2017, they held an average of 53.7 percent of the shares, compared with 52.4 percent a year earlier. Accordingly, they are benefiting to an above-average extent from the sharp rise in dividend payments by Germany's top corporations. >more


Perspectives on Corporate Finance

McKinsey & Company

MCKINSEY ON FINANCE: PERSPECTIVES ON CORPORATE FINANCE AND STRATEGY (NUMBER 65)

McKinsey on Finance offers practical ways of thinking about corporate finance based on McKinsey's experience and proprietary research. Topics in this issue include: "Bots, algorithms, and the future of the finance function"; "Looking behind the numbers for US stock indexes", and "How to know when better profit margins aren’t better for your company". >more


Financing of Tech Revolution

European Investment Bank

FINANCING THE DEEP TECH REVOLUTION

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


LIBOR

Oliver Wyman

CHANGING THE WORLD'S MOST IMPORTANT NUMBER: LIBOR TRANSITION

LIBOR, the London Interbank Offered Rate, is a series of benchmark interest rates and has been called the “world’s most important number.”  It is a globally recognized base rate for pricing loans, debt, and derivatives.  As a key part of the financial services infrastructure, over $240 trillion in products reference LIBOR. As LIBOR’s underlying transactions have diminished, regulators have announced a target date to stop supporting it and begun the process of identifying and creating alternative rates.  However, these rates are structurally different from LIBOR and it is unclear how existing products referencing LIBOR will change, and what new products will emerge. >more


Global IPO Q1 2018

Ernst & Young

GLOBAL IPO TRENDS: Q1 2018

Despite geopolitical uncertainties and market volatility, global IPO activity in the first three months of 2018 posted strong results to start the year. Global IPO markets raised US$42.8b in Q1 2018, a 28% year-over-year (YOY) increase on Q1 2017. However, with 287 listings this quarter, volume was down 27% YOY compared with Q1 2017, when it produced the highest number of listings for first quarter IPOs since 2007. These and other findings were published recently in the EY quarterly report, Global IPO trends: Q1 2018. >more


Global Corporate Divestment

Ernst & Young

GLOBAL CORPORATE DIVESTMENT STUDY 2018

The 2018 Global Corporate Divestment Study results are based on interviews with 900 senior corporate executives. The one theme that stands out in the survey results is digital transformation. It’s one of the biggest influences on the C-suite in 2018, both in terms of capital strategy and operating model decisions. Digital disruption, transformational shifts in customer preferences and sector convergence are forcing companies to make bets on future technology now. >more


European Credit Market

KfW

KREDITMÄRKTE IM EURORAUM: HETEROGEN ABER GESUND

The lending business has revived in the eurozone, giving the economic recovery in the currency area a new quality. However, significant differences emerge across European economies: While the credit market in France is booming and is also experiencing strong growth in Germany, its momentum in Italy and Spain is much lower. >more


European Board Agenda 2018

Ernst & Young

BOARD AGENDA 2018: TOP PRIORITIES FOR EUROPEAN BOARDS

The 2018 edition of EYs Board Agenda draws on the expertise of professionals to outline the most pressing topics and questions facing boards and audit committees: communicating effectively with stakeholders; developing a robust corporate reporting framework; optimizing decision-making around capital allocation; identifying, developing and retaining the best and brightest talent; anticipating and mitigating risks through internal processes and external partnerships; and developing potential board directors. >more


Credit Processes in Germany

PwC

EFFIZIENZ DER KREDITPROZESSE IN DEUTSCHEN KREDITINSTITUTEN 2017

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


Initial Coin Offering (ICO)

Ernst & Young

INITIAL COIN OFFERINGS

A lack of fundamental valuation and the due diligence process by potential investors is leading to extreme volatility of the initial coin offering (ICO) market, according to new research published by EY. The research also found that in some cases ICO investors are contributing capital at an average rate of over US$300,000 per second. The EY research, which studied 372 ICOs around the world, also found that the offerings raised US$3.7b1 in funds, twice the volume of VC investments in blockchain projects. Furthermore, the US is leading the race with the highest volume of ICOs originating from the country (over US$1b). Russia and China follow, with each over US$300m. >more


Credit Market December 2017

KfW

CREDIT MARKET OUTLOOK DECEMBER 2017

New lending from banks to businesses and self-employed persons rose by 3.9 % year-over-year in the third quarter. Although growth was not as strong as in the previous quarter, it remains clearly above average since the financial crisis. We expect momentum on the credit market for enterprises to remain high in the next quarters as investment picks up. >more


Global IPO

Baker & McKenzie

CROSS-BORDER IPO INDEX 2017: GLOBAL IPO VOLUME HITS TEN-YEAR HIGH

The Global IPO market delivers its best performance in ten years as a more stable geopolitical environment in key financial centers sees value of listings reach over USD 206 million. >more