Frank\u00adfurt am Main \u2014 Last year, company foun\u00adders and fami\u00adlies among the sellers of compa\u00adnies to finan\u00adcial inves\u00adtors reached a new record high of around 40 percent, the highest share ever recor\u00added. 19 of 47 manage\u00adment buyouts (MBOs) in the mid-market segment of the German buyout market were succes\u00adsion solu\u00adti\u00adons in 2018. This is a further increase on the previous two years, which alre\u00adady saw above-average levels of family buyouts. In previous years, barely more than one in ten tran\u00adsac\u00adtions had a family background.<\/p>\n
\u201cFoun\u00adders and family entre\u00adpre\u00adneurs are incre\u00adasingly reco\u00adgni\u00adzing the contri\u00adbu\u00adtion that finan\u00adcial inves\u00adtors can make to the further deve\u00adlo\u00adp\u00adment of their compa\u00adnies,\u201d said Tors\u00adten Grede, Spokes\u00adman of the Manage\u00adment Board of DBAG<\/strong>. He conti\u00adnues, \u201cWe are now seeing more and more entre\u00adpre\u00adneurs seeking new share\u00adhol\u00adders with new busi\u00adness models in promi\u00adsing indus\u00adtries \u2014 so the market is broa\u00adde\u00adning for us.\u201d<\/p>\n There was also a signi\u00adfi\u00adcant increase in buyout acti\u00advity over\u00adall. With 47 tran\u00adsac\u00adtions, finan\u00adcial inves\u00adtors struc\u00adtu\u00adred 12 more MBOs in the German SME sector last year than in 2017. This is also a new record for this market segment since Deut\u00adsche Betei\u00adli\u00adgungs AG (DBAG) began evalua\u00adting it in 2002. In almost every second tran\u00adsac\u00adtion (21 out of 47), finan\u00adcial inves\u00adtors were active on both sides, i.e. as sellers and buyers. Spin-offs from groups or conglo\u00adme\u00adra\u00adtes were again the excep\u00adtion in 2018, with seven cases.<\/p>\n The analy\u00adsis only takes into account tran\u00adsac\u00adtions in which finan\u00adcial inves\u00adtors have acqui\u00adred a majo\u00adrity stake in a company with manage\u00adment parti\u00adci\u00adpa\u00adtion and which have a tran\u00adsac\u00adtion value for the debt-free company of between 50 and 250 million euros. This is based on publicly available sources as well as esti\u00adma\u00adtes and rese\u00adarch by DBAG in coope\u00adra\u00adtion with FINANCE.<\/p>\n Last year, private equity compa\u00adnies finan\u00adced buyouts in the German SME sector worth a good 4.8 billion euros. This is the highest value since 2002, when the evalua\u00adtion began; in 2017, the market volume had amoun\u00adted to 4.4 billion euros. The average enter\u00adprise value decreased from 126 million euros to 103 million euros. Unlike in 2017, the vast majo\u00adrity of tran\u00adsac\u00adtions (30 out of 47) were now in the lower part of the segment (enter\u00adprise value: \u20ac50 million to \u20ac100 million). This corre\u00adsponds to the high propor\u00adtion of company foun\u00adders among the sellers: Of the 19 MBOs in which finan\u00adcial inves\u00adtors repla\u00adced fami\u00adlies as share\u00adhol\u00adders, 13 were dispo\u00adsals by the company foun\u00adder<\/strong>. As in the previous year, around half of the tran\u00adsac\u00adtions (24 out of 47) were struc\u00adtu\u00adred by multi\u00adna\u00adtio\u00adnal, pan-Euro\u00adpean private equity funds.<\/p>\n Deut\u00adsche Betei\u00adli\u00adgungs AG is repre\u00adsen\u00adted in the list of buyouts with three MBOs in 2018. It is thus once again one of the most active finan\u00adcial inves\u00adtors for private equity in the market segment under conside\u00adra\u00adtion. In the past 15 years, DBAG accoun\u00adted for 27 tran\u00adsac\u00adtions, more than any other finan\u00adcial investor.<\/p>\n Family offices are incre\u00adasingly percei\u00adved as real competition<\/strong> In addi\u00adtion to the abun\u00addant supply of capi\u00adtal, private equity firms face growing compe\u00adti\u00adtion from family offices. Just how strong is shown by the current survey of invest\u00adment mana\u00adgers from more than 50 private equity houses opera\u00adting in Germany, who are polled every six months on behalf of DBAG by the trade maga\u00adzine FINANCE about trends in the German midmar\u00adket segment. 72 percent of them \u2014 leaving stra\u00adte\u00adgic buyers aside for the moment \u2014 recently saw family offices as the biggest compe\u00adti\u00adtion outside the private equity camp. A year ago, only 59 percent did so. More than 80 percent of respond\u00adents agreed with the thesis that family offices have made life diffi\u00adcult for private equity inves\u00adtors in the battle for medium-sized take\u00adover targets in the past 12 to 24 months. These figu\u00adres suggest that at least those family offices that have estab\u00adlished private equity-stan\u00addard struc\u00adtures have caught up with the estab\u00adlished PE houses. Thus, family offices are not only percei\u00adved as compe\u00adti\u00adtors in bila\u00adte\u00adral discus\u00adsions with sellers of medium-sized compa\u00adnies, but almost as much in auctions.<\/p>\n Accor\u00adding to the survey, compe\u00adti\u00adtion among the port\u00adfo\u00adlio compa\u00adnies is rated at 8.4 on a scale of 1 (very low) to 10 (very high) \u2014 this assess\u00adment has hardly chan\u00adged in the past three years.<\/p>\n DBAG trig\u00adgers equity invest\u00adments of over 270 million euros in 2018<\/strong> Value enhance\u00adment of sophisticated<\/strong> Further infor\u00adma\u00adtion and the full results of the market survey and market statis\u00adtics, inclu\u00adding the complete list of MBOs in the German Mittel\u00adstand, are available on DBAG\u2019s website (www.dbag.de).<\/strong><\/p>\n About Deut\u00adsche Betei\u00adli\u00adgungs AG<\/strong> Frank\u00adfurt am Main \u2014 Last year, company foun\u00adders and fami\u00adlies among the sellers of compa\u00adnies to finan\u00adcial inves\u00adtors reached a new record high of around 40 percent, the highest share ever recor\u00added. 19 of 47 manage\u00adment buyouts (MBOs) in the mid-market segment of the German buyout market were succes\u00adsion solu\u00adti\u00adons in 2018. This is a [\u2026]<\/p>\n","protected":false},"author":2,"featured_media":42562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[886,1364,1366,1388],"tags":[],"class_list":["post-42552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-en","category-featured-en","category-news-en","category-shortcuts-en"],"yoast_head":"\n
\nDespite the larger market volume, compe\u00adti\u00adtion in the German SME buyout market is intense. This is because the supply of capi\u00adtal is also growing. In addi\u00adtion to the well-known private equity compa\u00adnies focu\u00adsing on invest\u00adments in German SMEs, there are other compa\u00adnies that are laun\u00adching funds for invest\u00adments in this segment on the market for the first time. Added to this is the capi\u00adtal of multi\u00adna\u00adtio\u00adnal private equity funds, which are also targe\u00adting the German market. Available capi\u00adtal will conti\u00adnue to exceed invest\u00adment oppor\u00adtu\u00adni\u00adties in 2019.<\/p>\n
\nIn 2018, Deut\u00adsche Betei\u00adli\u00adgungs AG struc\u00adtu\u00adred eight manage\u00adment buyouts for the funds it advi\u00adses: Three of these, namely the MBOs of the mecha\u00adni\u00adcal and plant engi\u00adnee\u00adring compa\u00adnies Karl Eugen Fischer GmbH and Kraft & Bauer GmbH as well as the auto\u00admo\u00adtive supplier Sero Schr\u00f6\u00adder Elek\u00adtro\u00adnik Rohr\u00adbach GmbH, were included in the statis\u00adtics mentio\u00adned at the begin\u00adning. the five other MBOs are attri\u00adbu\u00adta\u00adble to other market segments. DBAG trig\u00adge\u00adred equity invest\u00adments of around 270 million euros for this purpose. It has two funds at its dispo\u00adsal for invest\u00adments in the midmar\u00adket: DBAG Fund VII \u2014 the largest German private equity fund for invest\u00adments in the midmar\u00adket, with commit\u00adments of one billion euros \u2014 can deploy up to 200 million euros of equity per tran\u00adsac\u00adtion; more than 50 percent of the fund\u2019s resour\u00adces are commit\u00adted a good two years after the start of the invest\u00adment. The DBAG ECF invests majo\u00adrity or mino\u00adrity inte\u00adrests in compa\u00adnies with a smal\u00adler enter\u00adprise value; it focu\u00adses prima\u00adrily on owner-mana\u00adged medium-sized compa\u00adnies and offers a high degree of flexi\u00adbi\u00adlity with regard to the invest\u00adment ratio or holding period, which is parti\u00adcu\u00adlarly important for entre\u00adpre\u00adneurs, via a broad range of finan\u00adcing forms.<\/p>\n
\nDespite the recent dyna\u00admic deve\u00adlo\u00adp\u00adment of the buyout market, DBAG does not expect a further increase in the number of mid-market MBOs in 2019. \u201cMacroe\u00adco\u00adno\u00admic uphe\u00adavals, such as those caused by Brexit and trade conflicts, increase uncer\u00adtainty \u2014 this can affect pricing in the M&A busi\u00adness and market dyna\u00admics,\u201d said board spokes\u00adman Grede. \u201cFor the exis\u00adting port\u00adfo\u00adlio, the chall\u00adenge of selec\u00adting and imple\u00admen\u00adting value-enhan\u00adcing stra\u00adte\u00adgies \u2014 such as expan\u00adding the product range or ente\u00adring new geogra\u00adphic markets \u2014 remains significant.\u201d<\/p>\n
\nDeut\u00adsche Betei\u00adli\u00adgungs AG, a listed company, initia\u00adtes closed-end private equity funds and invests along\u00adside DBAG funds in well-posi\u00adtio\u00adned medium-sized compa\u00adnies with deve\u00adlo\u00adp\u00adment poten\u00adtial. DBAG focu\u00adses on indus\u00adtrial sectors in which German SMEs are parti\u00adcu\u00adlarly strong by inter\u00adna\u00adtio\u00adnal stan\u00addards. With this expe\u00adri\u00adence, know-how and equity, it streng\u00adthens the port\u00adfo\u00adlio compa\u00adnies in imple\u00admen\u00adting a long-term, value-enhan\u00adcing corpo\u00adrate stra\u00adtegy. The entre\u00adpre\u00adneu\u00adrial invest\u00adment approach makes DBAG a sought-after invest\u00adment part\u00adner in the German-spea\u00adking region. The capi\u00adtal mana\u00adged and advi\u00adsed by the DBAG Group amounts to appro\u00adxi\u00adm\u00adately 1.8 billion euros.<\/p>\n","protected":false},"excerpt":{"rendered":"