An event organized by MWE Training UG (haftungsbeschränkt)
9:00 am – 4:30 pm UTC
Hotel Bayerischer Hof
During 2013, the general European mergers and acquisitions (M&A) market showed a significant uplift in comparison with previous years, whereas the private equity market tended to be flat, with a downward turn in the second half of the year. How are these markets performing now that we are halfway through 2014?
At first glance, the M&A market seems to be continuing to blossom, with EUR 327 billion worth of deals during H1 2014 representing the highest value since H2 2008.(1) It appears that confidence in Europe’s recovery has increased, as the value of inbound deals surged by 47.4 per cent to EUR 106 billion in H1 2014, up from EUR 72 billion in H1 2013. A closer look reveals that the boost in value was triggered by a number of megadeals, with a real overall trend towards a decreasing number of transactions.(2) On that basis, there may be less confidence in the European market than first appears.
The private equity market is looking not quite as positive. Q1 2014 was the third quarter in a row in which private equity deals declined, as just EUR 37 billion were invested across 532 transactions, compared with 595 transactions in Q4 2013 and 802 transactions in Q3 2013, making Q1 2014 one of the worst quarters of the last few years.(3) This trend seems to have continued in Q2 2014.(4) Private equity investors possibly are less bullish owing to the lack of significant progress in European countries in resolving budget deficits and generating economic growth. What holds true for the buyers also seems to apply to sellers, whether secondary buyouts or trade sales, as opposed to the increased use of the initial public offering (IPO) exit. The 136 exits registered in Q1 2014 represent a 36 per cent decline compared to Q3 2013. Analysts claim that, if this Europe-wide decline trend continues throughout the year, 2014 could turn out to reflect a fall-back into the recovery that has been experienced over the last years. Others believe that the successful fundraising and the firm IPO exit channel to show private equity’s continuing return to strength and see a lot of optimism among market players.
Is there any chance of private equity stabilising as a result of the available equity and debt and starting to play a larger role in the overall M&A market? What impact have the banking and sovereign debt crises had? Will family office direct investment change the field of competing investors in the overall private equity market?
Market experts will address these questions and focus on private equity and family office direct investment.
- Alexander Krüger of Bankhaus Lampe will elaborate on the aftermath of the debt crisis and the consequences of the constantly low yield.
- A panel of private equity market participants will discuss the 2014 trends in the market.
- A group of debt financers and private equity players will talk about recent developments in leveraged finance.
- Representatives from prominent German family offices will discuss their strategy and how they are different to private equity funds.
- After lunch there will be sessions with strategic investors and funds from the life sciences, industrial, telecoms, media and technology (TMT) and food and retail sectors.
- The day will close with discussions on recent trends in management participation and innovations in the M&A process.
The conference will be held in German and English with simultaneous translation. We cordially invite you to attend MuMAC 2014. Please register by Friday, 12 September 2014.
- Christian von Sydow
- Dr Nikolaus von Jacobs
(1) Mergermarket H1 2014 trend report, July 2014; EUR number calculated at USD:EUR 1:0,72.
(2) Monthly M&A Insider, A Mergermarket Report on global M&A activity, June 2014
(3) Pitchbook 2Q 2014 European PE Breakdown
(4) Mergermarket Germany private equity – 2Q14 deals roundup, 02/07/2014
Please click here to view the MuMAC Highlights 2014 (10 MB).
Please click here to view the survey on family office direct investment in German speaking countries.
Dr. Carsten BöhmPartner Munich
Mark DavisPartner London
Dr. Stephan RauPartner Munich
Dr. Norbert SchultePartner Düsseldorf
Dr. Kian TauserPartner Frankfurt
Philipp von IlbergPartner Frankfurt
Dr. Nikolaus von JacobsPartner Munich
Christian von SydowPartner Munich
Rupert WeberPartner London
Dr. Ralf WeisserPartner Munich