Europe is central to this growth and the outlook for global deal making is positive. While markets in 2018 have been marked by increased volatility – the impending Brexit, geopolitical issues and uncertainty regarding global trade politics - corporate cash balances remain strong and debt financing looks set to be available, albeit with potentially tightening interest rates. Nonetheless, valuations remain high with the mid-market being an important driver in overall deal volume.
Driving this international activity is the imbalance of capital and deployment opportunities remains. We only need look at the Japanese and Chinese investment strategies for the next five years to understand that cross-border M&A will undoubtedly be top of the Asian agenda. With DC Advisory’s ties to both countries via our parent organisation Daiwa, we’ve witnessed first-hand the increasing appetite for European-based organisations from Japanese investors and how swiftly these processes can move: our recent NEC / NPS deal was completed in just 80 days, for example; and more recently, our German team completed the acquisition of H.C. Starck’s Tantalum and Niobium division by Japanese based JX Nippon Mining & Metals - a leading supplier of non-ferrous metal products.
Equally, despite political uncertainty across the US markets – in part due to Trump’s protectionist agenda – interest in European based M&A continues. Alongside our recently formed sister company, DCS Advisory, we’ve seen interest in cross-border transactions throughout the technology and energy and power sectors.
Stefan Jaecker, CEO of DC Advisory Germany commented: “For organisations wishing to capitalise on the continued flow of M&A activity worldwide, there is an art. Genuine price discovery and an in depth insight into the ‘local’ approach is key and can only be achieved through international due diligence. Business owners and private equity teams are now required to review ‘the globe’ for effective M&A solutions to match their growth ambitions.”
DC Advisory is a leading corporate finance advisor with specific expertise in cross-border transactions. As a subsidiary of Daiwa Capital Markets, the investment banking arm of Japan’s Daiwa Securities Group, and alongside sister company DCS Advisory in North America, DC Advisory is part of an established global brand with more than 900 professionals in 37 offices throughout Europe, Asia and the Americas. DC Advisory provides tailored independent advice on M&A, debt raisings and restructurings. For more information please visit www.dcadvisory.com.