European Private Equity Outlook 2011

More documents

Recommendations

Info

1 IMPROVED ASSET QUALITY - HOT SECTORS 2011 On the back of the improved economic prospects, we expect an increase in M&A activity in key sectors M&A in 2011 – sectors with increasing activity Automotive Capital goods Financial services Consumer goods, retail Business services Energy/utilities Chemicals Engineering Technology, Media Pharma/Healthcare Logistics Building and construction Tourism Source: Roland Berger HEAT INDICATOR HOT INDUSTRIES Automotive > Automotive industry was severely hit by the crisis. On the back of the global recovery, revenue and order intake have improved to record levels, which makes the disposal of assets likely Capital goods Financial services Consumer goods Business services > Most subsectors, such as plant construction or engineering, still remain very fragmented and provide substantial opportunities for classic platform buy-and-build strategies > Increase in regulatory efforts by the EU likely to drive consolidation in certain subsectors > Issues of German Landesbanken still need to be resolved > In certain subsectors, such as fashion and textiles, a substantial number of PE portfolio companies will be back in the market > Business services industries typically flourish in the recovery > Good opportunities to dispose of portfolio companies in various subsectors European Private Equity Outlook 2011_Final_010411.PPTX 32
2 COMEBACK OF STRATEGIC BUYERS Great cash reserves imply that M&A activities of strategic investors will increase – Enhanced competition for PE Indicators for increasing competition from strategic investors M&A VOLUMES WESTERN EUROPE [#, EUR bn] Corporate investors share by deal volume [%] 82.0 79.4 78.2 79.4 483 2003 477 2004 785 2005 881 2006 Source: Thomson Financial, Roland Berger Analysis 79.2 82.0 81.0 79.4 1,224 2007 968 2008 482 2009 398 2010 > Decreased share of strategic bidders since the beginning of the crisis in 2008 > During the crisis, many companies have abstained from acquisitions and have limited capital expenditure NON-RESTRICTED CASH OF EUROSTOXX 50 COMPANIES 1) [EUR bn] 1) Excludes financial services companies such as Allianz SE, BNP Paribas, Deutsche Bank, Münchener Rückversicherungs AG, and others 250 200 150 100 0 84 2003 97 2004 101 2005 105 2006 141 2007 CAGR: 19.9% 174 2008 184 2009 216 2010 > Cash levels have substantially increased from pre-crisis levels > Cash financing of transactions thus becomes much easier European Private Equity Outlook 2011_Final_010411.PPTX 33
Page 1 and 2: European Private Equity Outlook 201
Page 3 and 4: While PE regains momentum after a d
Page 5 and 6: Challenges for the mid and long ter
Page 7 and 8: PE investments are gaining momentum
Page 9 and 10: M&A volumes remain low, average dea
Page 11 and 12: B. A look at the European real econ
Page 13 and 14: Growth in Europe is sluggish and fa
Page 15 and 16: Public budgets are falling into dis
Page 17 and 18: Uncertainty about how the financial
Page 19 and 20: The capital market environment has
Page 21 and 22: High-yield bond market still no alt
Page 23 and 24: Current leverage levels are around
Page 25 and 26: After almost no activity in 2009, t
Page 27 and 28: D. Outlook for 2011 and beyond Situ
Page 29 and 30: SHORT-TERM TRENDS 2011 In 2011, we
Page 31: MEDIUM-TO-LONG-TERM TRENDS 2012+ In
Page 35 and 36: 4 FOCUS ON MID-SIZE DEALS Focus on
Page 37 and 38: 6 MORE DUAL TRACKS As the capital m
Page 39 and 40: 8 INCREASE IN BUSINESS MODEL INNOVA

European Private Equity Outlook 2011

Create successful ePaper yourself

Delete template?

Save as template?