M&A - Selected Projects
Issue #03, 01.02.2012

Welcome to the Year of the Dragon! In Asia the dragon is regarded as clever and the bringer of good luck. Following the Year of the Rabbit, the mood now in 2012 is again one of expectation – there are exciting times ahead, when we shall have to roll up our sleeves and tackle ambitious projects. We are aware that the Chinese horoscope does not exactly tally with the predictions of the World Bank and the IMF, but we secretly hope that the western experts may, perhaps, again be slightly off-beam with their forecasts as they were in 2011.

For us as M&A consultants the central question is: What will happen on the market in mergers and acquisitions?

In large parts of Europe, the market is cooling down. In Germany, company purchase prices are gradually falling, particularly in the sectors focusing primarily on the domestic market. In the export industries, prices are still rising. Multinational groups are exhibiting particularly keen interest in acquisitions.

It is different in countries such as Poland. Here, prices are rising across the board. The reason lies in the good general economic outlook and the above-average growth forecasts. The structure of our Polish clients has changed significantly in the past 3 years. In regard to sellers, there are now many follow-on projects, some 20 years after the collapse of Communism. Conversely, buyers are looking for more acquisition opportunities in western Europe and the Ukraine. Whereas the emphasis used to be on obtaining western finance, Polish firms nowadays are strong – including financially – and successful. That enables them to finance their expansion plans themselves.

In Romania the situation is totally different. Romanian business proprietors are looking for financially strong partners who can help to tap into the huge potential of this highly industrialised country. So long as buyers, with the support of their advisers, can curb the Romanian proprietors' often exaggerated ideas on price, they can make some very profitable investments, especially in the small to medium-sized enterprise sector. However, in many cases investors need to take a long-term view, because it will be some years before Romania is fully developed.


Since the M&A landscape varies greatly from one country to another, knowledge of the situation in particular countries is all the more important, because mergers and acquisitions are rapidly becoming a more global business: Europe and the world are becoming ever more closely intertwined.

Consequently, as the German M&A specialist, JP Mergers & Finance AG is adopting an increasingly international focus: 80 % of the transactions on which we give advice are now cross-border deals. This places ever greater demands on our team of advisers – after all, we want to guarantee our clients comprehensive, tailor-made solutions in cross-border projects, too.

In any case, 2012 will be an exciting year offering new opportunities for astute entrepreneurs, despite – or on account of – all the crises. We wish you good luck and every success in the new year. It will be our pleasure to support you in realising your entrepreneurial ambitions.

Best regards,

Heinz Jäger
- CEO -

JP Mergers & Finance AG

 

JP Mergers & Finance AG

 


Schillerstraße 101
D-63512 Hainburg
Phone.: +49 (0) 6182 9904-83
Fax: +49 (0) 6182 9904-88
CEO: Dipl.-Kfm. Heinz Jäger
eMail: vorstand@jpmergers.com
Web: www.jpmergers.com


- Road Shows -

Rumänien
Bucharest
7th - 9th February 2012

Poland
Warsaw
/ Krakow
19th/22th February 2012

JP offers free consultations to discuss strategic options for your business. Only a few timeslots left. Contact us. Strict confidentiality assured.

 


Mailing Options


 

 

Selected Projects
[
more projects on our website]

There are several purchase requests as well as offers for sale in the field of (corn) farms, mills and bakeries.
Project
KORN [more]

Sellers

Profitable media (CD, DVD, BlueRay, booklets etc.) and packaging producer with well order situation and an annual turnover of € 40 mn is for sale. Location: Middle Europe.
Project No. 42940

Healthy producer and distributor of frozen goods (i.e. fruits and vegetables)  with a turnover of 20 mn € in Poland seeks investor.
Project No. 46743

Leading Eastern European B2B publishing group with an annual turnover of € 1.5 mn offers a majority stake. The company is specialized in publications in the field of consumer goods and pharmaceutical industries with additional expanding online coverage and event planning activities.
Project No. 95517

Dairy processing facility with an  annual turnover of about € 60 mn is for sale in Germany.
Project No. 56904

Large mill (turnover € 50 mn) and bakery (turnover € 60 mn) companies in SE Europe searching for strategic investors.
Project No. 79254

Leading bakery in Eastern Europe with turnover of € 55 mn seeks strategic investor or alliance.
Project No. 76669

Fast-growing European IT wholesaler with current turnover of € 30 mn seeks an investor to acquire up to 70 % of the shares in the company.
Project No. 163847


Buyers

Large corporation producing dairy products such as cheese is seeking for acquisition objects with an annual turnover > € 40 mn throughout Europe. Fresh food services with a turnover around € 50 mn are preferred.
Project No. 67060

German  supplier wants to acquire distributors as well as hardware producers in the field of LPG (Liquefied Petroleum Gas) with an annual turnover > € 15 mn in Eastern Europe.
Project No. 57391

International high quality packaging solution provider wants to expand further and seeks quality packaging producers with an annual turnover of > € 10 mn.
Project No. 73722

Large Euopean group seeks (grain) mills to acquire with an annual turnover larger € 30 mn.
Project No. 170748

European producer of alcoholic beverages seeks spirits producers within Europe for acquisition.
Project No. 67928

International engineering services group would like to buy firms with annual turnover between € 10 mn and € 60 mn.
Project No. 156611

Producer of BIO goods searches for acquisition especially in the segment of BIO dry foods with a turnover between € 5 mn and € 10 nm.
Project No. 67847

Strong communication provider is searching for communication provider with own mobile networks for cooperation in Eastern Europe. 
Project No. 1780


Business valuation: EBIT multipliers

The multiples are averages for the sector and are constantly adjusted in line with the market, taking account of empirical values and market data. They relate to earnings before interest and tax, which permits an estimate of the approximate value of the business in the case of a deal.
 

Company size
[Turnover in million €]

 

< 50

 

50 - 150
 > 150
Sector Multiplier
(Trend)
Multiplier
(Trend)
Multiplier
(Trend)
IT & Communications 6,7 7,3 8,0
Technical Industry 6,0 6,5 → 7,2
Chemical / Pharmaceutical Industry 7,0 7,7 8,3
Logistics 6,2 6,6 7,6
Commerce 6,3 7,1 8,2
Food 6,2 6,9 7,7 →
Other 5,7 6,5 7,0

[Update: December 2011]

 

JP Mergers & Finance Aktiengesellschaft
Schillerstraße 101 • D-63512 Hainburg • Telefon: +49 (0) 6182 9904-83 • Fax: +49 (0) 06182 9904-88
CEO: Dipl. Kaufmann Heinz Jäger • eMail: Vorstand@JPMergers.com • Head of the Supervisory Board: Adam Jörges