Business Breakfast: Experts discuss takeover climate at seventh ann Continued from page 80


of Brexit.” Yet he added: “The UK remains the largest hotel investment market in Europe, worth £6.3 billion in the last 12 months.” The industry was also


warned to expect a slowdown in economic growth next year. Alexander Boersch, chief


economist at Deloitte Germany, said: “There are serious headwinds for the eurozone economy and we already see the effects. Trade growth is at an all-time low. There has been an industrial recession in eurozone manufacturing through the whole of 2019. We see a 20-point fall in eurozone investment intentions. “Brexit adds to the


uncertainty. It poses a challenge to the UK and to the euro economy – an effect often underrated in Europe. The UK is more important than China as an EU export market. German trade with the UK is down 7% this year. The automotive trade to the UK has fallen 20%, pharmaceuticals 40%. Brexit has consequences already.” Boersch added: “There is a


two-tier economy. Services and domestic-oriented sectors thrive, but manufacturing suffers. Can this decoupling go on? Yes for now, but not for ever. Consumers are quite optimistic about their own outlook, but less optimistic about the macro-economic outlook. It could last into next year, but investment is weak.” He warned of a “synchronised


slowdown” in the world economy and described forecasts of slower but continued growth as “somewhat optimistic”, since they “assume an easing of trade tensions, a rebound in emerging economies and a smooth Brexit”.


On the Beach has funds to buy more businesses


Leading OTA On the Beach says it has the cash and backing from its investors to move for further acquisition targets. The publicly listed agent was


taken through a successful IPO (initial public offering) on the Stock Exchange in 2015 by former private equity owner Inflexion. It has since bought rival OTA


Sunshine.co.uk and traditional tour operator Classic Collection Holidays as it looks to widen its reach by establishing a B2B division. In August, a former director of


global advisory at Rothschild & Co, Adam Hansen, was brought in as corporate development director to identify potential acquisition targets. He told the breakfast that OTB


has a three-pronged approach to growth through M&A. It will target businesses based


Adam Hansen


Picken: Why I quit Traveltek after equity investment


Traveltek founder and former chief executive Kenny Picken said his decision to leave the technology firm came after he decided he had taken the business as far as he could. In 2016, Picken oversaw the


sale of a minority stake to private equity firm YFM Equity Partners, which invested £5.3 million in the Glasgow-based firm. Picken told the breakfast he


78 14 NOVEMBER 2019


in countries with cooler climates – in the UK, northern and central Europe; look at targets where there is good access to lowcost flying, in particular offering routes to popular beach resorts; and aim for a blend of short-haul and long-haul. “As and when targets emerge


had originally favoured selling the business and exiting, but was advised to take PE investment. He committed to a further three


years under the deal with YFM, but said he later realised it was not for him and exited in June this year. “It got to a point down the


road and I realised I was not any happier,” he said. “All I have ever done is work for myself and at first it was really, really good. I found it very collaborative. But, as things went on, I realised decision-making was not necessarily my own. I had gone as far as I really wanted to go with it. I wanted a change.” Picken has now established


Kenny Picken


Caleta International Investments (Cii), a vehicle for him to invest in other firms. He said he “did not want to remain completely dormant” and created Cii after former Traveltek clients got in touch seeking his advice.


travelweekly.co.uk


that look interesting, we will move,” said Hansen. “We have cash on the balance sheet and there is pressure from investors to deploy that cash. “Clearly there are headwinds in


the sector and there are challenges on the demand and the supply side. “But, I guess challenges create


opportunities and we will look to capitalise on those opportunities as and when they arise.” Hansen said the Sunshine.co.uk


acquisition was of a “look-alike” to OTB and offered the opportunity to drive synergies as well as grow its UK beach destination outbound market. He admitted the Classic Collection


buyout may “on the face of it look a bit left field” but said it was an opportunity to access the five million UK holidaymakers who still book offline. “Although offline share is falling,


it’s still a huge share of the market and clearly [the failure of Thomas Cook] means there are opportunities in that area,” Hansen said.


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