In M&A, it’s often believed that strategic buyers pay more than PE firms due to expected synergies. Our recent research on the IT sector, however, reveals that from 2015 to 2024, PE buyers paid higher multiples than strategic buyers in most years.
Aalto Capital had the pleasure of attending the 2024 Mergermarket Forum in London last month, where many fascinating topics and views were discussed and debated. At this year’s event, it was mentioned that strategic investors accounted for 76% of deal flow in the first four months of 2024 – a strikingly high proportion.
Building on Aalto Capital’s previous exploration of the IT Services sector in Europe, which revealed a significant discount at which smaller-cap stocks trade compared to their larger counterparts, we delve into another critical metric: trading turnover.
China opened 4,100 kilometres of new railways in 2022 alone. For context, most of the UK’s rail system is managed by Network Rail, which has 15,811 kilometres of rail under management. The UK is home to the oldest rail network in the world, with the London Underground allowing the city to be a continued hive of business activity. However, new technologies and ground-up designs have allowed other countries to catch up.
With recent focus on geopolitical tensions and macroeconomic uncertainty, ESG news has cooled in recent months. Still, progress is being made, and companies and investors continue to view sustainability initiatives positively. According to KPMG, US CEOs expect to see significant returns from investing in sustainability within the next five years. Moreover, investors continue to prioritise investments which have strong sustainability strategies.
Last month, we wrote about the urgent need to decarbonise the built environment, which contributes nearly 40% of global carbon emissions. Now, we turn our attention to another major emitter: the transportation industry, responsible for roughly one-fifth of global emissions.
To optimise value during post-merger integration and safeguard against valuation drops, management teams must enact comprehensive strategies to ensure successful company integration and enhance subsequent increases in valuation.
After the 2021 private equity boom and the underperformance of many (mostly technology) companies, many PE funds are now struggling to realise returns and raise follow-on capital from their LPs. Some private equity firms are turning to NAV financing to supplement their traditional LPs’ funding.
Small-cap strategies for growth in the M&A market In 2023, the M&A market faced notable challenges, with global deal value dropping by 15%, reflecting the impact of high interest rates and geopolitical tensions. Another important consideration is growing antitrust scrutiny. According to Allen & Overy, prohibited transactions rose by 50% in 2023 across 26 jurisdictions…
The built environment is by far the largest contributor of carbon emissions, accounting for 37% of global emissions, according to the UN Environment Programme. Operational emissions, like heating, cooling, and lighting, comprise the majority of building emissions, while materials and construction are also held responsible.