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germany about international gmbH

M&A International GmbH is one of Germany´s leading and highly recognized independent advisory firms specializing in mergers & acquisitions and corporate finance with focus on mid-sized transactions. Customers are predominantly family-owned businesses as well as private equity firms and multinational companies in Germany and abroad.

thoughts for 2013

Despite all prophecies of doom, m&a activity involving German companies as buyers and/or sellers remained strong during the first half of 2012. Standing at 654, the number of recorded transactions was close to the relatively high level seen during the first six months of 2011 (655). As such, it was almost 10% higher than the average figure for the first half-year periods between 2007 and 2011 (599). Looking back over the last 10 years, it is clear that only in the first six months of 2004 there were more transactions (680). Now, for the fourth half-year in a row, over 650 transactions have been recorded. The transaction market involving German companies has shown itself to be robust and unaffected by the on-going Euro crisis.

The estimated transaction volume (cumulative value of all agreed transactions) declined to €67bn. Taking the cumulative volume of last year, which stood at €76bn, as a basis, the drop equated to 11.8%. Nevertheless, the current figure is almost a fifth (18%) above the average volume of the first half-year periods between 2007 and 2011. Despite the high number of transactions, fewer large transactions have been completed than in the previous year. This fact is also reflected in the analysis of the Top 10 completed transactions. The volume of the ten largest completed acquisitions has

dropped considerably from €18.8bn to €10.3bn. The number of transactions involving financial investors has increased by about 12%, from 85 to 95, compared to the previous period. An encouraging sign is that, again, further larger transactions have been announced. Nevertheless, the financing environment for private equity still remains challenging.

What does this mean for the M&A market in Germany in the coming 12 to 18 months?

General sentiment: Despite the uncertainty over the global economic environment and volatile equity markets, we do not observe an indication of a significant downward trend.

The transaction market involving German companies has shown itself to be robust and unaffected by the on-going Euro crisis.

These are some of the key findings of the “m&a monitor”, the latest market survey of transactions involving German companies during the first six months of 2012, which was carried out by M&A International GmbH.

M&A activity is expected to remain high in sectors like services, IT, mechanical engineering, chemicals and pharmaceuticals, internet & media as well as in non-cyclical areas such as consumer goods and food/ beverages.

Main driver in Germany will be the mid- market transactions, while the environment might be still conducive to large strategic deals.

The number of takeovers of German businesses by foreign companies is expected to remain on a high level.

The number of acquisitions by German companies in emerging markets (China, India, Brazil – but also Turkey) is supposed to grow.

The environment for financial investors continues to remain challenging. We expect fewer acquisitions by financial investors due to the lower level of acquisition financing. In return the number of exits might increase.

Founded already in 1977, the company has a global focus and a well-established international network of independent co-operation partners. In the past 15 years M&A International has successfully advised its clients on more than 100 transactions, 80% of which were cross border in nature.

Key drivers for its clients` success are the

passion for each individual project, the comprehensive project management as well as the outstanding ability to successfully complete projects.

M&A International is also renowned for its twice a year published study “m&a monitor” on M&A transactions with involvement of German corporates.