News und Studien cometis AG, Frankfurt am Main

Private Equity ante Portas

Peter Köhler and Robert Landgraf illuminate the dazzling scene of financial investors. With the setback in 2018, MDAX valuations have shrunk from 20.7 times the annual profit to 16.9 times. With the falling valuations, the appetite of financial investors is growing. In addition, the editors outline a chain of effects that has rarely been discussed so far. “On the one hand, the index funds are reducing liquidity in trading, and on the other, the swings are increasing in response to new news.” This makes the stock market uncomfortable for companies. The board members are therefore happy to implement a long-term strategy with one or two investors. That would play into the hands of financial investors. In addition, the investment companies do not only have full coffers. They can also easily raise further capital. “In the meantime, the level of indebtedness is 5.4 times higher than EBITDA and thus even higher than in the top year of 2008”, according to Köhler and Landgraf. Against this backdrop, 2019 could still bring some surprising takeovers. From cometis’ point of view, private equity investors certainly have their advantages. However, if you focus exclusively on this target group, you may underestimate the independence and other advantages offered by financing via the stock exchange.

Michael Diegelmann

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Michael Diegelmann
Henryk_Deter

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