BDO KNOWS INTERNATIONAL PRIVATE EQUITY …...TRENDS TO WATCH IN GERMANY’S PE SECTOR Navigating...
1
BDO KNOWS INTERNATIONAL PRIVATE EQUITY 1 2 4 5 3 For more information, visit http://www.bdo.com/privateequity, read the full Q&A with Michael or contact: U.S. Private Equity Lee Duran, Co-Leader, Private Equity Practice, BDO USA, [email protected] / 858-431-3410 Scott Hendon, Co-Leader, Private Equity Practice, BDO USA, [email protected] / 214-665-0750 Germany Private Equity Michael Maxeiner, Leader, Private Equity Practice, BDO Germany, [email protected] Private equity investors are increasingly seeking cross-border deals in the private equity space, making it more important than ever for them to stay up-to-date on the state of private equity abroad. BDO USA regularly connects with its global colleagues to discuss the current trends in the sector. CHARTING A STEADY COURSE IN ROCKY INTERNATIONAL WATERS INDUSTRIES RISE TO NEW ALTITUDES MARKET POINTS TO OPPORTUNITIES AHEAD ACTIVITY IN BERLIN BUOYS THE COUNTRY’S OVERALL PERFORMANCE STEERING THROUGH NARROW IPO EXIT CHANNELS Sources: “Berlin Keeps Germany Afloat,” by Vidur Sachdeva, July 18, 2016, Unquote. BDO Horizons Q2 2016: A Quarterly Analysis of Global Mid-Market Deal Activity, June 2016, BDO Global. “Private Equity in Germany: Market and Regulatory Overview,” by Andreas F. Bauer, Petra R. Eckl and Timo Patrick Bernau, 2015, Practical Law. BDO Knows International Private Equity: Spotlight on Germany, June 2016, BDO USA. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.com. Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your firm’s individual needs. © 2016 BDO USA, LLP. All rights reserved. TRENDS TO WATCH IN GERMANY’S PE SECTOR Navigating International Markets: Chemicals & Industrials, Technology & Media, and Business Services accounted for 74% of total middle market deal volume in the DACH region in Q1 2016 “Distressed asset investments have bottomed out in recent years as high liquidity and near-zero interest rates have helped a number of struggling entities delay restructurings, leading many equity houses specializing in this space to diversify to other segments of the market where deal flow was stronger. The rising tide has lifted all boats, including those with leakages – many of the restructurings that have been delayed remain inevitable and we expect to see opportunities for PE firms to invest in distressed assets crop up again in the near future.” – Michael Maxeiner, BDO Germany From 2011 to 2015, deal value in Berlin increased 78% and deal volume nearly doubled “Germany has actually been a beneficiary of the Eurocrisis to date. German businesses were able to take advantage of the economic conditions to boost exports and grow international sales.” – Michael Maxeiner, BDO Germany 2015 saw a 30% increase in deal volume and a 206% increase in deal value compared to 2009 lows Between 2011 & 2015, Germany’s PE and VC industries completed the 3rd highest volume and value of transactions in Europe Technology and consumer deals accounted for 94% of new deal activity in Berlin Deals in other major cities, including Munich, Hamburg and Cologne declined; deal volume was collectively down 28% from 2011 to 2015 TRANSACTIONS 2011 53 2015 101 3,556 deals valued at €264.8bn Holding periods increased to an average of 5-7 years 80% of transactions were secondary buyouts in 2014 and 2015 Exit activities in 2014 slowed more than 5% from 2013 BDO Germany's Michael Maxeiner teamed up with BDO USA's Lee Duran to map out the latest developments in Germany's private equity sector. With this guide in hand, international investors won't get lost at sea.
Transcript of BDO KNOWS INTERNATIONAL PRIVATE EQUITY …...TRENDS TO WATCH IN GERMANY’S PE SECTOR Navigating...
BDO KNOWS INTERNATIONAL PRIVATE EQUITY
1
2
4
5
3
For more information, visit http://www.bdo.com/privateequity, read the full Q&A with Michael or contact:
U.S. Private EquityLee Duran, Co-Leader, Private Equity Practice, BDO USA, [email protected] / 858-431-3410Scott Hendon, Co-Leader, Private Equity Practice, BDO USA, [email protected] / 214-665-0750
Germany Private EquityMichael Maxeiner, Leader, Private Equity Practice, BDO Germany, [email protected]
Private equity investors are increasingly seeking cross-border deals in the private equity space, making it more important than ever for them to stay up-to-date on the state of private equity abroad. BDO USA regularly connects with its global colleagues to discuss the current trends in the sector.
CHARTING A STEADY COURSE IN ROCKY INTERNATIONAL WATERS
INDUSTRIES RISE TO NEW ALTITUDES
MARKET POINTS TO OPPORTUNITIES AHEAD
ACTIVITY IN BERLIN BUOYS THE COUNTRY’S OVERALL PERFORMANCE
STEERING THROUGH NARROW IPO EXIT CHANNELS
Sources:“Berlin Keeps Germany Afloat,” by Vidur Sachdeva,
July 18, 2016, Unquote.BDO Horizons Q2 2016: A Quarterly Analysis of
Global Mid-Market Deal Activity, June 2016, BDO Global.
“Private Equity in Germany: Market and Regulatory Overview,” by Andreas F. Bauer, Petra R. Eckl and Timo Patrick Bernau, 2015, Practical Law.
BDO Knows International Private Equity: Spotlight on Germany, June 2016, BDO USA.
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.com. Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your firm’s individual needs. © 2016 BDO USA, LLP. All rights reserved.
TRENDS TO WATCH IN GERMANY’S PE SECTOR
Navigating International Markets:
Chemicals & Industrials, Technology & Media, and Business Services accounted for 74% of total middle market deal volume in the DACH region in Q1 2016
“Distressed asset investments have bottomed out in recent years as high liquidity and near-zero interest rates have helped a number of struggling entities delay restructurings, leading many equity houses specializing in this space to diversify to other segments of the market where deal flow was stronger. The rising tide has lifted all boats, including those with leakages – many of the restructurings that have been delayed remain inevitable and we expect to see opportunities for PE firms to invest in distressed assets crop up again in the near future.”
– Michael Maxeiner, BDO Germany
From 2011 to 2015, deal value in Berlin increased 78% and deal volume nearly doubled
“Germany has actually been a beneficiary of the Eurocrisis to date. German businesses were able to take advantage of the economic conditions to boost exports and grow international sales.”
– Michael Maxeiner, BDO Germany
2015 saw a 30% increase in deal volume and a 206% increase in deal value compared to 2009 lows
Between 2011 & 2015, Germany’s PE and VC industries completed the 3rd highest volume and value of transactions in Europe
Technology and consumer deals accounted for 94% of new deal activity in Berlin
Deals in other major cities, including Munich, Hamburg and Cologne declined; deal volume was collectively down 28% from 2011 to 2015
TRANSACTIONS
2011
53
2015
101
3,556 deals valued at €264.8bn
Holding periods increased to an average of 5-7 years
80% of transactions were secondary buyouts in 2014 and 2015
Exit activities in 2014 slowed more than 5% from 2013
BDO Germany's Michael Maxeiner teamed up with BDO USA's Lee Duran to map out the latest developments in Germany's private equity sector. With this guide in hand, international investors won't get lost at sea.
