Study – Impact of COVID on Private Equity in Germany, Switzerland and Austria

Summary of Key Findings

On March 19 & 20, 2019 we ran a survey with 400 participants from Private Equity in Germany, Switzerland and Austria.

Please find below the summary of the key findings:

• More than 85% of participants expect that GDP will decrease, 75% expect that decrease to be more than 1%.
• The following industries may be hit the most:
  • Automotive and Automotive Suppliers,
  • Machinery,
  • Transportation,
  • Logistics and Tourism, and
  • Textile.
• The following industries may benefit the most:
  • Pharmaceutical,
  • Food & Beverage, and
  • Telecommunications.
• 70% of respondents see a high impact on their current M&A processes.
• 65% forecast a short-term drop in deals and transactions.
• With regards to their investment behavior they are split: 50% plan to take advantage of opportunities and continue to invest, while the other 50% look at postponing investments.
• As a reaction to the current deal environment, 60% plan to use more flexible contract mechanism and deal structuring (e.g. purchasing price, working capital, etc.)
• The majority will stay away from industries affected by KONJUKTUR and look for supply chain security with their new investments.
• Investors expect less availability of debt financing when structuring deals, a temporary delay in deal processes, and will put more focus on existing portfolio companies.