M&A market in Bulgaria in 2013

M&A market in Bulgaria in 2013

M&A trends in 2013 globally. The world M&A sector continued a slightly downward trend in 2013. While the number of transactions stayed in the same level as 2012, the total deal volume decreased 3.2% according to Mergermarket’s annual report. The total volume was in 2013 2,215.1 B$. European M&A deals valued at US$ 631.6bn dropped 12% compared to 2012 (US$ 717.8bn) and showed a second annual decline.

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The valuation of a freight forwarder

What is a forwarding company worth?

In this article we want to give you some insights in the valuations of forwarding companies. This is the content of the article:

  • Developments in the global forwarding industry
  • Value and price expectations of business owners in the forwarding market
  • How to value a company in general
  • What determines the price of a forwarding company
  • Detailed description of items that have an effect on price
  • Valuation multiples we see in the forwarding market

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Successful mergers and acquisitions examples

(Un)successful mergers and acquisitions examples

In this article I want to open a discussion on practical examples of (un)successful mergers and acquisitions examples. I want to focus on the larger corporate deals that everybody knows. Based on these larger examples we can determine what went wrong or what went right. This can help us to learn how to prevent these mistakes for the smaller deals we do.

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How to sell a software business?

Differences between selling a software company and a ‘normal’ company?

There is quite some differences between selling a software business and a normal business. So what is different about a Software Business?

In reality two extremes occur in the sale of a software company: Future potential of perceived and future realisable value. Or established recurring revenue from a strong customer base.

In London over 250 software companies have......

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M&A deal breakers in transactions (business sales)?

What is a Deal Breaker?

Quite regularly we hear about successful transactions. Less frequently we hear about deals that have not closed. Even the M&A transactions that come to a successful end might have had some difficult moments. Also in these transactions possible issues for a deal to not happen can have occurred. This article focuses on deal breakers and to a lesser extend on methods how to prevent them.

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M&A market in Estonia in 2013

M&A trends in 2013

World M&A sector was in downward trend in 2013. When the number of transactions stayed in the same level as 2012, the total deal volume decreased 3.2% according to Mergermarket annual report. The total volume was in 2013 2,215.1 B$. European M&A deals valued at US$ 631.6bn dropped 12% from 2012 (US$ 717.8bn) and represented a second annual decline.

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Blogging in the M&A market

What is blogging?

To get a better understanding of blogging and to answer this question I typed the text blogging in Google and visited the number one result in the leading search engine. If you like to make things difficult you should follow the nr.1 result and read the article from Wikipedia. The Nr. 2 result that......

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Financing alternatives for your business in 2014

For financing your company there are several options. Most important options at this moment are;

  • Bank loans
  • Crowd Funding
  • Lending by guilds
  • Funding via VC or PE
  • Funding via M&A

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Austrian forwarding company acquires Japanese freight shipping company

Acquisition by an Austrian forwarding company of a Japanese air and sea freight shipping company

Weiss-Rohlig, a joint venture of Gebruder Weiss GmbH and Rohlig & Co. Holding GmbH & Co. KG, has acquired JHB Express, Ltd., a Japan-based air and sea freight shipping company. As a part of the transaction, Weiss-Rohlig has also acquired air cargo certifications such as the IATA and the Japanese consolidation license. The acquisition will expand Weiss-Rohlig’s presence in the Asian market and strengthen its intra-Asia traffic, especially its major trading partners in the US and Europe will benefit from the transaction.

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France-based logistics services company buys China-based freight forwarding company

France logistics acquirer buys a China-based freight forwarding company

At the end of 2011 Groupe Norbert Dentressangle, a France-based logistics services company, has acquired APC Beijing International, a China-based freight forwarding company. The acquisition strengthens Norbert's network in China and enhances Norbert’s service offering in airfreight forwarding. Getting access to the Chinese freight forwarding market is becoming more and more important due to the growth of this market. Corporate Finance in Europe’s forwarding M&A team notices regular interest of European forwarding companies that want to buy forwarding companies in China. Also interest from US buyers exist to enter the Chinese market.

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M&A road & rail transportation in Italy

M&A in the Italian transportation market

M&A in the Italian transportation and forwarding market will continue to occur. If one looks at the changing patterns in the fashion industry which is very important for Italy it is clear that the transportation and forwarding market will adapt to this. M&A is an alternative for larger buyers to improve its position an create synergies. In 2011 the Italian road & rail transportation market grew by 6.5% to reach a value of $60 billion. The industry is forecast to have a value of $85 billion in 2016, an increase of 42.3% since 2011. Rail freight is a small segment accounting for 1.2% of the market value which is lead by road freight accounting for 98.8%. Italy accounts for 12.7% of the European road & rail transportation market value. France is leader of the European market with 16.1%, Germany is second with 15%.

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Acquisition of Italian pharmaceutical logistics company by UPS

M&A in the logistics area of the pharma and cosmetics market in Italy

At the end of last year UPS (United Parcel Service Inc), an US-based package delivery company, has entered into an agreement to acquire Pieffe Group, an Italy-based pharma logistics company. The acquisition allows United Parcel Service to support its ongoing global healthcare strategy. The cosmetics as well as the fashion industry represent large markets in Italy with relevant logistics activity. Pieffe Group is engaged in stocking and distribution of pharmaceutical and cosmetic products. United Parcel Service (UPS) is one of the largest package delivery companies, a leader in the US less-than-truckload industry, and a global leader in supply chain management operations.

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M&A in German road & rail transportation

M&A in the transportation market in Germany

We see sales of transportation companies in the German market due to retirement and expect further consolidation and hence M&A activity over the next years. Although the larger transportation companies have already acquired a significant number of privately owned companies we think further M&A will occur. Being able to deliver road transportation at low prices is crucial and hence scale (and cheap financing possibilities) is an important driver to compete. The German road & rail industry shrank by 1.3% in 2011 to reach a value of $71 billion although the volume grew by 2.7%. Forecast for 2016 shows an increase of the value to $80 billion, which means the compound annual growth rate of the industry in the period 2011–16 is predicted to be 2.6%. The German road freight segment accounts 93,7% of the total market value. Germany accounts for 15% of the European road & rail transportation market value.

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M&A in Spanish road & rail transportation

M&A in the transportation market in Spain

We do expect quite some consolidation and hence M&A activity to see in the Spanish transportation market over the next years. Being able to deliver road transportation at low prices is crucial and hence scale (and cheap financing possibilities) is an important driver to compete. In 2011 the Spanish road and rail market reached a value of $34 billion. In 2016 the rail & road industry is forecast to have a value of $52 billion, an increase of 53% since 2011. Road freight is accounting for 99% of the transportation market value. The market in Spain accounts for 7,3% of the European market value. During the growth of the Spanish transportation market we think large buyers will grow their market share organically and via M&A activity.

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Acquisition of UK ocean freight forwarding companies by Kerry Logistics

Acquisition of ocean freight forwarding companies

Last year Kerry Logistics acquired two Freight Forwarding Companies in the UK. Kerry Logistics Network Limited, a Hong-Kong based provider of freight and logistics services, has acquired Bergen Freight Forwarding Limited, a UK-based sea freight forwarding company. Bergen Freight Forwarding Limited is a freight forwarding company specializing in sea freight imports from India. Ocean freight from India is expected to increase significantly so the freight forwarding companies involved in this activity grow their business often by buying smaller sized companies active in this area.

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M&A in Italy (2012)

M&A investing in Italy

Italy is the 10th largest economy in the world based on purchasing power parity. The fiscal situation is fragile and political circumstances could damage reforms and could lead to further instability. An €40bn ($56.2bn) austerity program should tackle the weak financial position. According to Transparency International’s Corruption Perception Index 2010, Italy is ranked 67th among 178 countries. The foreign investment laws of Italy are similar to those of other EU countries, structural rigidities and the dominant public sector have an adverse impact. Tax rates in Italy remain relatively high. The effective tax rate is 31.4%, basic rate of corporate tax in Italy is 27.5% and local tax is imposed at a rate of 3.9%. The EU average in 2010 was 23.2%.

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M&A in Finland (2012)

Economic situation in Finland

Finland joined the European Union (EU) in 1995. Finland’s debt remains below the 60% benchmark set by the European Union's (EU’s) growth and stability pact. It is declining from 44% of the GDP in 2008 to 38% in May 2011. Despite the debt level, exports are still not returned to the level before the crisis. Due to the decline in international trade the total value declined from $129bn in 2008 to $89bn in 2009 with a small recovery to $90bn in 2010. Almost no corruption exists in Finland. The country is ranked 4th out of 180 on the Transparency International’s Corruption Perceptions Index. This makes Finland an attractive country for foreign (M&A) investments.

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