Acquisition Prices Dominate

FOR ITS LEAD STORY "INVESTORS ON SHOPPING SPREES", SME magazine “Unternehmeredition” [Businessman edition] asked IEG to carry out an assessment of the second half of 2016 in terms of sales and mergers. Schmidt sees all sorts of dynamics, particularly in the internet and technology sectors and refers to the merger between Auctionata and Paddle8, as well as the successful sale of the book retailer Thalia. These are two current IEG transactions that demonstrate how exciting the market is.

Germany will play an important role. Schmidt is particularly focussing on the Berlin start-up scene; the effects of Brexit may potentially enhance the very strong standing of the German capital - for professionals, founders and investors alike.

Demand from investors is immense

IN CONTRAST TO EARLIER YEARS, investors are increasingly originating from Asia. Chinese and Indian investors are particularly focussing on the European markets and are also seeking innovative, profitable and rapidly growing companies in Germany. “Demand from investors is immense”, explains Schmidt. The margin level is attractive. Companies wishing to make a sale will never find as good a time window as now, says Schmidt. Nevertheless, he recommends carrying out a thorough valuation: “The valuation forms only one part of the equation.”

You can read the full article here.
Or in: Investors on Shopping Sprees, “Unternehmeredition”, 4/2016

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