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.
