Mergermarket Germany Forum

17-18 March 2020, InterContinental Hotel, Düsseldorf

Agenda

  • 12:00

    Registration and networking lunch

  • 12:10

    Lunchtime workshop: Mitigating risk – tax risk insurance and W&I insurance in Germany

    Contrary to W&I insurance, contingent tax risk insurance is still a mainly unknown product to most of the parties involved in M&A transactions and quite frequently those products are confused with each other. This session will shed light on the scope of application of contingent tax risk insurance and how it can be combined with W&I insurance.

  • 12:45

    Chair's opening remarks

  • 13:00

    Panel: Private equity fundraising landscape

    This panel will explore how dealmakers are sourcing and allocating funds looking at expected returns, risk profiles, sector merits and how Germany sits in a broader European global context. This panel will discuss:

    • How are niche, German players getting ahead?
    • How can GPs create a strategy in an overcrowded market targeting a limited pool of LPs?
    • What level of diversity are LPs looking towards in terms of portfolio makeup? 
    • Where should funds domicile? And what are the implications of optimising domicile location in terms of public perception?
    • How is LP regulation towards ESG affecting GPs?
  • 13:45

    Fireside chat: German private equity trends

    In this fireside chat, speakers will discuss the findings of a recently published report on German private equity trends reviewing the statistics defining the market. 

  • 14:15

    Keynote: Macro-economic outlook in Germany

    In this keynote, a political speaker will provide a macro-economic outlook and the impact on German businesses. They will review trade wars, political risk and the drivers and effects of an upcoming downturn.

  • 14:45

    Networking coffee

  • 15:15

    Panel: Cross-border M&A deal drivers

    DACH M&A activity fell short of the equivalent period last year. The downturn comes amid Osram’s lapsed competing bids which are the latest in a long list of situations to have failed to progress. This panel will discuss:

    • What is the current pipeline for deals and private equity appetite? What is the pipeline for M&A in the Mittelstand?
    • What has encouraged inbound activity from Asian investors and in particular Japanese companies?
    • What is the pipeline for divestments as corporates seek to consolidate in the face of a downturn?
  • 16:00

    Panel: Evolution of direct lending in Germany

    A shift away from bank loans towards private equity and private debt funds, as well as international financiers and FinTechs, has added complexity to the financing process in Germany. German direct lending is no longer about fringe players raising funds on the promise of yield. Although, competition has increased resulting in deterioration of documentation and tighter returns, but investors remain optimistic about German direct lending’s growth. This panel will discuss:

    • What opportunities are there for sponsor-less lending for mid-cap companies?
    • How has documentation deteriorated with increased competition?
    • What returns are direct lending for private equity and private debt funds yielding?
    • How are banks responding to competition with covenant-light and covenant loose documentation?
    • Which sectors are LPs optimistic about given the senior secured nature and, so far, low default rates of direct lending?
  • 16:45

    Case study: The German conglomerate

    In this session, M&A professionals involved in a German conglomerate will examine rationale, processes and success via organic and inorganic growth. The speaker will review R&D, growth strategies, financing and divestment.

  • 17:15

    Chair's closing remarks and networking drinks

  • 19:00

    Cocktail reception

  • 20:00

    Speaker and delegate dinner

  • 09:00

    Registration and networking coffee

  • 09:30

    Chair's opening remarks

  • 09:40

    Keynote: Digital portfolio strategies

    Businesses everywhere are thought to have benefited from industry 4.0 including through higher productivity and cost reductions from using real-time data. 56% of industrial companies have already digitized their operations, in particular, in the electronics and mechanical engineering industries. This keynote will address digital strategies within portfolio companies in the face of an economic downturn.

  • 10:10

    Panel: Value creation and exit opportunities

    Investors and managers are facing new challenges brought about by tighter regulations, high valuations and a new breed of entrepreneurs in the German private equity market. GPs must try to increase the EBITDA of their portfolio companies now more than ever in a tough environment for returns. This panel will discuss:

    • What value creation strategies can GPs embark on to improve operations and grow the top line?
    • How can GPs turn compliance issues such as due diligence and ESG standards into opportunities?
    • What risk does Brexit pose to cross-border trade that might affect portfolio companies?
    • Which exit routes can provide highest valuations - IPO, trade sale or M&A? 
  • 10:55

    Fireside chat: Activism in Germany

    In this panel, activist funds, corporates and advisors will discuss the trend of activism in Germany and their strategies to achieve key board changes in listed companies. 

    • What is driving the rise in European shareholder activism? What is attracting US activists to the German and European markets?
    • What are the trends in key board changes that activists are seeking?
    • Which successful tactics are activists utilising in their pursuit of board change? 
    • How can companies employ effective PR strategies to manage the potential reputational damage of activism campaigns?
  • 11:25

    Networking coffee

  • 11:55

    Case study: German take-private deal

    In this case study, panellists will review the rationale and success of a recent take private deal in Germany. Speakers will discuss the drivers behind this current trend. 

  • 12:25

    Fireside chat: ECM update and German tech IPOs

    The IPO market in Germany had a subdued start to 2019, but investors remain confident of a strong pipeline following tech company Teamviewer’s €5.25bn IPO which launched in the second half of 2019. This panel will discuss: 

    • Go public vs stay private; what opportunities and risks do each track provide? Why are more and more businesses opting for a take private strategy?
    • Exits in terms of the wider economy; liquidity into the larger economic ecosystem
    • A closer look at Teamviewer’s IPO and valuations of tech companies – can valuations continue to stay this high?
  • 13:00

    Networking lunch

  • 14:00

    Panel: Distressed M&A

    Economic growth in Germany has cooled in 2019 due to international trade conflicts and political instability in the Eurozone. In 2019, insolvency figures rose 5.7% at the beginning of the year. In particular, the German banking sector is facing high competition leading to insufficient profits to satisfy shareholders. The recent collapse of the proposed merger between Deutsche Bank and Commerzbank has shown that consolidation has faced challenges.

    • What consolidation strategies are companies using in the face of stretched liquidity?
    • Which international and national investors are showing interest in German distressed debt and asset investments?
    • How are negative interest rates and regulatory obligations adversely affecting banks? Can lenders afford to pay negative interest rates on excess liquidity?
  • 14:45

    Fireside chat: Disruption through acquisition

    Companies are increasingly using M&A as a strategic expedient to capture disruptive innovation growth opportunities. The main segments include IoT, Digital and Social. Corporate venturing has also emerged as part of corporate innovation strategies. 

    • R&D versus acquisitions for innovation?
    • How can companies ensure assimilating external innovation?
    • What are the advantages to corporate venturing versus acquiring mature tech companies?
  • 15:20

    Networking coffee

  • 15:50

    Case study: Automotive innovation

    The German automotive sector illustrates the difficulties faced by industry with worsening consumer sentiment, loan delinquencies and newcomers looking for disruption. This case study will review how an automotive company has prepared for downturn through innovation.

  • 16:20

    Panel: Cross-border M&A post-merger integration

    Deal makers and senior management often leave culture as an after-thought in cross border M&A. This can lead to challenges through-out the deal and in the integration phase. This session will discuss: 

    • What are the cultural challenges of cross-border M&A?
    • What are the people implications involved in a deal?
    • Once cultural differences have been identified, how can a successful integration be managed?
  • 17:05

    Chair's closing remarks

  • 17:10

    Networking drinks reception

  • 12:00

    Registration and networking lunch

  • 12:10

    Lunchtime workshop: Mitigating risk – tax risk insurance and W&I insurance in Germany

    Contrary to W&I insurance, contingent tax risk insurance is still a mainly unknown product to most of the parties involved in M&A transactions and quite frequently those products are confused with each other. This session will shed light on the scope of application of contingent tax risk insurance and how it can be combined with W&I insurance.

  • 12:45

    Chair's opening remarks

  • 13:00

    Panel: Private equity fundraising landscape

    This panel will explore how dealmakers are sourcing and allocating funds looking at expected returns, risk profiles, sector merits and how Germany sits in a broader European global context. This panel will discuss:

    • How are niche, German players getting ahead?
    • How can GPs create a strategy in an overcrowded market targeting a limited pool of LPs?
    • What level of diversity are LPs looking towards in terms of portfolio makeup? 
    • Where should funds domicile? And what are the implications of optimising domicile location in terms of public perception?
    • How is LP regulation towards ESG affecting GPs?
  • 13:45

    Fireside chat: German private equity trends

    In this fireside chat, speakers will discuss the findings of a recently published report on German private equity trends reviewing the statistics defining the market. 

  • 14:15

    Keynote: Macro-economic outlook in Germany

    In this keynote, a political speaker will provide a macro-economic outlook and the impact on German businesses. They will review trade wars, political risk and the drivers and effects of an upcoming downturn.

  • 14:45

    Networking coffee

  • 15:15

    Panel: Cross-border M&A deal drivers

    DACH M&A activity fell short of the equivalent period last year. The downturn comes amid Osram’s lapsed competing bids which are the latest in a long list of situations to have failed to progress. This panel will discuss:

    • What is the current pipeline for deals and private equity appetite? What is the pipeline for M&A in the Mittelstand?
    • What has encouraged inbound activity from Asian investors and in particular Japanese companies?
    • What is the pipeline for divestments as corporates seek to consolidate in the face of a downturn?
  • 16:00

    Panel: Evolution of direct lending in Germany

    A shift away from bank loans towards private equity and private debt funds, as well as international financiers and FinTechs, has added complexity to the financing process in Germany. German direct lending is no longer about fringe players raising funds on the promise of yield. Although, competition has increased resulting in deterioration of documentation and tighter returns, but investors remain optimistic about German direct lending’s growth. This panel will discuss:

    • What opportunities are there for sponsor-less lending for mid-cap companies?
    • How has documentation deteriorated with increased competition?
    • What returns are direct lending for private equity and private debt funds yielding?
    • How are banks responding to competition with covenant-light and covenant loose documentation?
    • Which sectors are LPs optimistic about given the senior secured nature and, so far, low default rates of direct lending?
  • 16:45

    Case study: The German conglomerate

    In this session, M&A professionals involved in a German conglomerate will examine rationale, processes and success via organic and inorganic growth. The speaker will review R&D, growth strategies, financing and divestment.

  • 17:15

    Chair's closing remarks and networking drinks

  • 19:00

    Cocktail reception

  • 20:00

    Speaker and delegate dinner

  • 09:00

    Registration and networking coffee

  • 09:30

    Chair's opening remarks

  • 09:40

    Keynote: Digital portfolio strategies

    Businesses everywhere are thought to have benefited from industry 4.0 including through higher productivity and cost reductions from using real-time data. 56% of industrial companies have already digitized their operations, in particular, in the electronics and mechanical engineering industries. This keynote will address digital strategies within portfolio companies in the face of an economic downturn.

  • 10:10

    Panel: Value creation and exit opportunities

    Investors and managers are facing new challenges brought about by tighter regulations, high valuations and a new breed of entrepreneurs in the German private equity market. GPs must try to increase the EBITDA of their portfolio companies now more than ever in a tough environment for returns. This panel will discuss:

    • What value creation strategies can GPs embark on to improve operations and grow the top line?
    • How can GPs turn compliance issues such as due diligence and ESG standards into opportunities?
    • What risk does Brexit pose to cross-border trade that might affect portfolio companies?
    • Which exit routes can provide highest valuations - IPO, trade sale or M&A? 
  • 10:55

    Fireside chat: Activism in Germany

    In this panel, activist funds, corporates and advisors will discuss the trend of activism in Germany and their strategies to achieve key board changes in listed companies. 

    • What is driving the rise in European shareholder activism? What is attracting US activists to the German and European markets?
    • What are the trends in key board changes that activists are seeking?
    • Which successful tactics are activists utilising in their pursuit of board change? 
    • How can companies employ effective PR strategies to manage the potential reputational damage of activism campaigns?
  • 11:25

    Networking coffee

  • 11:55

    Case study: German take-private deal

    In this case study, panellists will review the rationale and success of a recent take private deal in Germany. Speakers will discuss the drivers behind this current trend. 

  • 12:25

    Fireside chat: ECM update and German tech IPOs

    The IPO market in Germany had a subdued start to 2019, but investors remain confident of a strong pipeline following tech company Teamviewer’s €5.25bn IPO which launched in the second half of 2019. This panel will discuss: 

    • Go public vs stay private; what opportunities and risks do each track provide? Why are more and more businesses opting for a take private strategy?
    • Exits in terms of the wider economy; liquidity into the larger economic ecosystem
    • A closer look at Teamviewer’s IPO and valuations of tech companies – can valuations continue to stay this high?
  • 13:00

    Networking lunch

  • 14:00

    Panel: Distressed M&A

    Economic growth in Germany has cooled in 2019 due to international trade conflicts and political instability in the Eurozone. In 2019, insolvency figures rose 5.7% at the beginning of the year. In particular, the German banking sector is facing high competition leading to insufficient profits to satisfy shareholders. The recent collapse of the proposed merger between Deutsche Bank and Commerzbank has shown that consolidation has faced challenges.

    • What consolidation strategies are companies using in the face of stretched liquidity?
    • Which international and national investors are showing interest in German distressed debt and asset investments?
    • How are negative interest rates and regulatory obligations adversely affecting banks? Can lenders afford to pay negative interest rates on excess liquidity?
  • 14:45

    Fireside chat: Disruption through acquisition

    Companies are increasingly using M&A as a strategic expedient to capture disruptive innovation growth opportunities. The main segments include IoT, Digital and Social. Corporate venturing has also emerged as part of corporate innovation strategies. 

    • R&D versus acquisitions for innovation?
    • How can companies ensure assimilating external innovation?
    • What are the advantages to corporate venturing versus acquiring mature tech companies?
  • 15:20

    Networking coffee

  • 15:50

    Case study: Automotive innovation

    The German automotive sector illustrates the difficulties faced by industry with worsening consumer sentiment, loan delinquencies and newcomers looking for disruption. This case study will review how an automotive company has prepared for downturn through innovation.

  • 16:20

    Panel: Cross-border M&A post-merger integration

    Deal makers and senior management often leave culture as an after-thought in cross border M&A. This can lead to challenges through-out the deal and in the integration phase. This session will discuss: 

    • What are the cultural challenges of cross-border M&A?
    • What are the people implications involved in a deal?
    • Once cultural differences have been identified, how can a successful integration be managed?
  • 17:05

    Chair's closing remarks

  • 17:10

    Networking drinks reception