DC Advisory (DC) has been a mid-market corporate finance adviser for 25 years in Germany; however, as a result of changing proprietorships and mergers, it can look back on a slightly shorter presence in the European market.
The year 2009 marked a decisive development in the company’s rising position as an expert for cross-border transactions when Daiwa became its new owner.
“Our setup was pan-European, but now we have added an Asian element, thus expanding our scope of activities. The acquisition by Daiwa in 2009 was important for us. There are many players in the M&A market focusing on the mid-market, mostly with an English or American background,” says CEO Stefan Jaecker. “However, we are unique, as we can also cover the Asian markets.”
The Frankfurt-based subsidiary of the Daiwa Group shows both a European and a global orientation. Mr. Jaecker is the CEO for the entire DACH region, and the Polish subsidiary also reports to him. DC Germany employs a workforce of 30 people, among them 24 financial professionals.
Following the acquisition, DC in Frankfurt has been able to intensify its cooperation with the Japanese parent company, resulting in a growing number of German-Japanese deals. The German subsidiary has brought on board excellent new staff and has found an ideal balance between private equity and corporate clients on a European basis.
“We are still very much a corporate finance adviser with a strong orientation towards mid-sized companies. Many primary deals involve family companies that aim to put their corporate succession on a sound basis,” says Mr. Jaecker.
For DC, the focus on the mid-market results in transactions ranging from 50 to 500 million EUR. In Europe alone, DC completes around 100 transactions per year with a size ranging from 100 to 150 million EUR per deal.
Due to low interest rates in the EU, activity in corporate acquisitions has been on the increase for some time, and in particular the German market has been experiencing a keen interest in domestic company acquisitions and mergers. DC’s experience in this market, its expertise in special sectors and sound judgment on possible acquisitions are valuable assets for its customers.
“Our core focus is on M&A products with regard to advice, sales and privatization of companies, as well as on financial advice, including restructuring advice and LBO financing,” points out Mr. Jaecker. “Last year, we were extremely successful with Daniel Gebler in LBO financing and Frank Jung in restructuring advice.”
The finance adviser’s key markets are industry and industrial services, business and support services, technology, energy, renewable energy, infrastructure, retail and consumer goods, health care as well as chemicals and media.
“Our sector teams cooperate very effectively. Due to our European/Asian background, we are in a position to provide a global offering to midsized industries in Europe. Our global standing is a strong differentiating factor that adds value to our M&A and debt advisory services,” stresses Mr. Jaecker.
As an international group and as a German player, DC is eager to maintain and even expand its unique position in the M&A mid-market.