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NEWSLETTER of November 22, 2019

 

The following content has been added at finexpert:


German Takeover
& Endgame
Report 2019

ValueTrust, finexpert and HHL proudly present the 1st German takeover&endgame report. The report gives a thorough empirical overview over the entire process of a takeover under German law starting from the offer bid over the acceptance period and completion to the “endgame” of structural measures reaching the 100% ownership in the target company. This report replaces this year’s finexpert capital market report and finexpert multiple report, which will be published and updated every two years from now on. Over the last 10 years we have collected a unique database tracking all German takeover offers made from 2005 on, including all following structural measures like the signing of a DPLA, delisting decisions and squeeze outs. Our database also includes the appraisal proceeding under German law reviewing the compensation offered to the minority shareholders, ending by a final court ruling or an out of court agreement between the parties. This allows to calculate the total cost of ownership as the full cost of finally achieving 100% ownership in the target company including the offer premium paid, the compensation offered to minority shareholders and the potential increase of the compensation in the appraisal proceeding. This report complements the annual ValueTrust/finexpert takeover report giving detailed information on the German takeover offers published earlier this year. As we finished the intensive update of our database by end of Q3 2019, we decided to publish this report immediately. We will continue with the report on an annual basis and expect the next report, then updated with the 2019 takeover offers, structural measures and appraisal proceedings to be published in early 2020. We hope that the information provided in this report is of help for your business. Content: Management summary | Takeover Offer Analysis | Post-offer Structural Measures | Appraisal Proceedings to Structural Measures | Total Cost of Ownership  >more


Studies > Performance

Roland Berger

ASSET MANAGEMENT: CHINA IS LIBERALIZING ITS FINANCIAL SERVICES

Only 6 percent of global assets under management originates from China while almost half comes from North America (47 percent). However, the Chinese asset management market has grown faster than the global market in recent years. Thanks to the ongoing liberalization of financial services and the recent regulatory changes in this sector, access to the asset management market is improving significantly for foreign players. Now is the right time for foreign asset managers to reassess their strategic options in China. >more

Studies > Corporate Finance

Deloitte

CFO SURVEY HERBST 2019

For the 16th edition of the German CFO Survey, Deloitte surveyed 145 CFOs of major German companies. The study focuses on the economic prospects of the most important regions of the world as well as the situation and strategy of German companies. In addition, the current survey focuses on the increased pressure to act due to climate change and the dilemma of digital talent management in the finance function. >more

Studies > Corporate Finance

Lazard

QUARTERLY REVIEW OF SHAREHOLDER ACTIVISM – Q3 2019

2019 is closing the gap with prior years following an active Q3. 159 campaigns were launched at 145 companies in 2019 YTD, compared to 185 campaigns at 171 companies in 2018 YTD. Although 2019 still lags 2018’s record pace, the 51 new campaigns launched in Q3 2019 is a ~19% increase over Q3 2018. >more

Studies > M & A

Mergermarket

AT THE CROSSROADS: EXPLORING M&A IN 2019 AND BEYOND

Mergermarket is pleased to present At the Crossroads: Exploring M&A in 2019 and Beyond, published in association with Squire Patton Boggs. The report features global M&A data for 2019 to the third quarter, analysed by region and sector, underscored with insights into what is driving corporates and private equity houses to seek out transactions and where they see most opportunity. >more

Studies > Alternative Investments

Debevoise & Plimpton

THE PRIVATE EQUITY REPORT FALL 2019

A highly competitive environment places a premium on finding creative ways to get deals done. Once those deals have consummated, there is often a need to secure additional financing for add-on acquisitions through the proper structuring of incremental debt. Strategies for debt (re)structuring are also relevant for companies grappling with a liquidity crunch. And aside from the nuts and bolts of transactions and financing, funds and companies must also contend with ongoing regulatory emphasis on disclosure regarding a range of topics. >more


Research Papers > Corporate Finance

CORPORATE LIQUIDITY, ACQUISITIONS, AND MACROECONOMIC CONDITIONS

Isil Erel, Yeejin Jang, Bernadette A. Minton, and Michael S. Weisbach
2019
This paper evaluates how the relation between firms’ cash holdings and their acquisition decisions changes over macroeconomic cycles using a sample of 47,615 acquisitions from 36 countries between 1997 and 2014. Higher cash holdings and stronger macroeconomic conditions each increase the likelihood that a firm will make an acquisition. However, larger cash holdings decrease the sensitivity of acquisitions to macroeconomic factors, suggesting that cash holdings lower financing constraints during times when the cost of external finance is high. Announcement day abnormal returns for acquirers follow a consistent pattern: they decrease with acquirer cash holdings and with better macroeconomic conditions. >more

Research Papers >     M & A

LESS POPULAR BUT MORE EFFECTIVE TOEHOLDS IN CORPORATE TAKEOVERS

Yun Dai, Sebastian Gryglewicz, and Han Smit
2019
Despite their claimed advantages, toehold strategies have rarely been adopted in recent corporate takeovers and do not seem to increase acquirer returns. Are toeholds ineffective and becoming obsolete? We show that this is not the case. We find that toeholds are preferred for executing difficult takeovers. After controlling for such endogeneity in toehold-based acquisitions, toeholds do increase returns to acquirers. Moreover, the performance of toehold strategies improves over time due to more selective and more effective acquisition of toeholds. We find that this time trend is in part explained by learning-by-doing from past toehold acquisitions. >more