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STUDIES | CORPORATE FINANCE

Management

Roland Berger

CARVE-OUT MANAGEMENT: FOUR QUESTIONS TO SUCCEED

Carve-outs are among top managers’ favorites, because they have all kinds of potential. In the 2019 study "The carve-out challenge: A roadmap for success," consultants from Roland Berger explain what carve-out management is all about, and suggest four key strategic questions that each manager should ask him or herself to succeed. >more


Restructuring

Oliver Wyman

RESTRUCTURING AGAINST THE ODDS - HOW TO WIN IN A CRISIS

The European economies have done very well over the past years. However, there are early signs that this decade of almost continuous growth may be coming to an end. Two-thirds of the participants in our survey believe there will be more companies in crisis mode in the future. In addition, they assume that higher trade barriers and weaker growth in emerging markets may intensify a new economic downturn. On the other hand, crises are not necessarily caused by a general industry decline but instead by changes in technologies or customer needs, which also allow for opportunities if they are addressed with the right business design. >more


Shareholder Activism H1 2019

Lazard

QUARTERLY REVIEW OF SHAREHOLDER ACTIVISM – H1 2019

Lazard's quarterly review of shareholder activism compiles and analyzes data on key activism trends globally. It shows that campaign activity is in line with elevated multi-year pace, but ~25% lower than record 2018. M&A theses are arising in nearly half of all campaigns and activists are driving significant board and management change. There is also evidence that activism outside the U.S. reaches record highs. >more


Financing Situation in Germany

KfW Research

UNTERNEHMENSBEFRAGUNG 2019 - KREDITZUGANG: FINANZIERUNGSKLIMA TROTZT DER KONJUNKTURELLEN ENTWICKLUNG

The financing situation of companies in Germany remains extraordinarily positive. The companies have high internal financing capacity, low interest rates for loans and relaxed credit guidelines from German banks. According to this year's business survey, which KfW conducts annually together with several leading German associations, the proportion of companies reporting difficulties in accessing credit is now 8.9%. Since 2012 this figure has fallen by about one third. In contrast, 60.6 % of companies report that access to credit is fairly "easy".  >more


Studies > Corporate Finance

Ernst & Young

GLOBAL IPO TRENDS: Q2 2019

After a very weak start to the year, the global market for IPOs recovered significantly in the second quarter. While in the first three months of the year only 205 IPOs were counted, bringing in just 15 billion US dollars, the number of IPOs rose to 302 in the second quarter. The issue volume even increased to 57 billion US dollars thanks to several IPOs of large corporations and strongly growing technology start-ups. >more


DAX Investors

Ernst & Young

WEM GEHÖRT DER DAX? ANALYSE DER AKTIONÄSSTRUKTUR DER DAX UNTERNEHMEN

German investors have little to gain from the DAX dividend record. Of the 36.5 billion euros distributed by DAX companies this year, only 12.5 billion euros will flow to German shareholders - a decline of 0.4 percent compared to the previous year. By contrast, the DAX groups transferred 19.8 billion euros to foreign investors - 4.8 percent more than in the previous year. For the remaining 4.2 billion euros, the nationality of the investors cannot be determined. The reason for the rising dividend payments to foreign investors: Foreign investors further increased their DAX exposure last year. >more


Crowdlending

Deloitte

CROWDLENDING – EINE ALTERNATIVE FÜR UNTERNEHMEN?

Disruption of the banking market was prophesied to crowdlending. There was talk of high growth rates and a threat to banks. In addition to private peer-to-peer loans, swarm financing was considered to have great potential for financing small and medium-sized enterprises (SMEs). Deloitte had already taken this opportunity in 2015 to take a closer look at crowdlending in this important segment. The result back then: crowdlending was not yet a serious competitor for traditional bank loans. The interviewees felt that a personal relationship with their bank was too important for them to have considered the new financing option more closely. A repeat of the study in 2018 showed that although the general awareness of crowd lending had risen sharply, companies still indicated that their house bank was their preferred financing partner. >more


Basel IV

Deloitte

DER NEUE KREDITRISIKOSTANDARDANSATZ NACH BASEL IV

As a result of the adoption of CRR II, banks are currently paying particular attention to the imminent changes in capital requirements. In this White Paper, Deloitte describes the new regulations and also addresses the data requirements. In the course of test calculations, it has been shown that information is often missing in order to be able to calculate the new KSA correctly. From this, the need for action for IT can be derived. >more


Activist Investors

Alix Partners

ENGAGING WITH ACTIVIST INVESTORS:  2019 EUROPEAN CORPORATE SURVEY

As European executives’ concern over activism rises, over half admit they lack a clear strategy to deal with activist approaches: Almost 70% of senior executives report concern about the rise of activism. 65% say that the importance of activism has increased – or dramatically increased - on companies’ priority lists over the last year. However, 53% admit that they lack a clear strategy for dealing with activism and only 10% rate their ability to meet the challenge as high. >more


Equity Capital Markets

Baker McKenzie

THE FUTURE OF EQUITY CAPITAL RAISING

Throughout 2019, equity capital markets will continue to be stalked, and perhaps even held hostage, by some of the same macroeconomic and geopolitical risks that conspired to derail benchmark indices and IPO activity at the end of 2018. From the threat of a prolonged global trade war and its impact on the global economy, to the impact of rising interest rates and potential economic disruption from Brexit, equity capital markets could again be buffeted by the volatility these risks provoke. But looking beyond what could happen this year, indeed, taking a three to five year view, what is the outlook for equity capital markets and for the IPO market in particular? Moreover, to what extent is the IPO market undergoing change? What are the factors driving this and what in turn does this mean for companies going public in the future? >more


Significance of German Banks

Roland Berger

HABEN DIE BANKEN ALS FINANZIERER DER DEUTSCHEN WIRTSCHAFT AUSGEDIENT?

So far, if a German company has needed money, it has usually obtained it from banks. With the next economic downturn things could change in Germany because funds are increasingly outstripping financial institutions. This downturn may come sooner than expected. Nine out of ten experts surveyed for Roland Berger's "Restructuring Study 2019" believe that the number of restructuring cases continues to rise this year. According to the study, companies in the automotive and consumer goods industries will be particularly affected. >more


Activist Investors

Deloitte

BE YOUR OWN ACTIVIST: DEVELOPING AN ACTIVIST MINDSET

Activist investors have been operating in the marketplace for some time, but recently, the combination of a favourable regulatory environment and abundance of funds to invest, means that activists are here to stay. Executives and Boards who understand and apply activist techniques are better placed to meet the demands of activists and simultaneously drive shareholder value. This means they may look to understand the motivation of activists, ask some difficult internal questions about company performance and future direction, and then take concrete steps to improve shareholder returns. These pre-emptive actions can demonstrate that management is listening to shareholders and is taking measures to achieve superior results. >more


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