NEWSLETTER of May 10, 2024

The following content has been added at finexpert:

Bain & Company
BAIN-BUNDESLIGA-BENCHMARKING: BAYERN ERNEUT WIRTSCHAFTSMEISTER, FRANKFURT UND STUTTGART HOLEN AUF
The analysis of the most important economic value levers reveals the strengths and weaknesses of the Bundesliga soccer clubs. The more effective the use of their economic resources, the greater their chances of keeping up with international competition in the long term. Bayern Munich also performed particularly well in the 2022/2023 season, followed by Union Berlin and Eintracht Frankfurt. Union Berlin and Freiburg excel in squad value management, Leverkusen sets standards in merchandising and Stuttgart is number one in social media. >more

PwC
GEWERBLICHE IMMOBILIENKREDITE IN DER KRISE: STEHT DEUTSCHLAND VOR EINER NPL-WELLE?
Higher key interest rates, a sharp decline in transaction volumes and regulatory requirements are significantly increasing the default risk for commercial real estate financing. The volume of non-performing commercial real estate loans has already risen by 56% in 2023. Macroeconomic factors are leading to property value discounts and therefore also to increased loan-to-values and higher credit risks - a further increase is therefore to be expected. Project financing is particularly at risk, as are non-ESG-compliant office and retail properties in secondary locations. However, a wave of NPL sales on the scale of the major financial crisis is not to be expected. There are significant differences to the initial situation at that time. >more

Deloitte
2024 GLOBAL CORPORATE DIVESTITURE SURVEY
In our latest Global Corporate Divestiture Survey of mergers and acquisitions (M&A) and restructuring leaders, we explore not only the latest trends in divestiture, but also its changing role in corporate strategy. A wholly realized M&A approach is really what we might call an M&A&D approach. >more

ifo INSTITUT
ECONOMIC EXPERTS SURVEY Q1 2024
This survey of the Economic Experts Survey (EES) of the ifo Institute and the Institute for Swiss Economic Policy examines inflation expectations of economists on a global level. The result: although inflation expectations worldwide remain well above central banks’ inflation target, a further decline in the expected inflation rate for 2024 compared with previous quarters is evident. For the long run however, expectations start to increase again. The report on this survey wave also contains a Spotlight on the implications of the Russian invasion of Ukraine for the neighboring countries. >more

COMPENSATION CONSULTANTS AND CEO PAY PEER GROUPS
Iftekhar Hasan, Woon Sau Leung, and Stefano Manfredonia
2024
We explore the impact of consultants on firms' selection of compensation peers and the resulting consequences on CEOs' pay packages. Our analysis of peer choice models reveals that, in addition to the commonly observed "peer pay effect" of favoring peers with higher-paid CEOs, firms also exhibit a preference for peers that employ the same consultant. This preference is found to reinforce the peer pay effect. We also observe that firms with a greater number of peers sharing a consultant tend to have higher median peer pay and CEO pay, less pay-performance sensitivity, and lower consultant turnover. Further results suggest that consultants may influence firms to select higher-paid CEO clients as peers due to a familiarity bias and a desire to attract new/repeated businesses. >more

THE BLURRING LINES BETWEEN PRIVATE AND PUBLIC OWNERSHIP
Michelle Lowry
2024
As companies choose to stay private longer, they increasingly resemble their public counterparts. Along multiple dimensions, the shift from private to public status resembles a gradual transition rather than a regime shift. First, there is growing overlap between the sources of capital employed by private and public firms. Second, corporate governance structures such as the Board of Directors evolve over the years both preceding and following the IPO. As private firms become larger with more disperse ownership, their governance demands more closely resemble those of public firms; post-IPO dynamics are consistent with governance demands continuing to evolve over the firm’s life cycle. Third, while going public has been characterized as a means to obtain an acquisition currency, firms are increasingly growing via acquisition prior to the IPO. Macro-level changes reward economies of scale and scope, and the increased availability of capital to private firms facilitates acquisitions as a means to obtain rapid growth. >more