Switzerland

Mergermarket data shows that the German-speaking region ended the first half of 2020 in terms of M&A better off  than the rest of the continent. 

At the half-year stage, US dealflow was down sharply whilst China was least impacted. Megadeals declined although mid-market showed resiliency. Meanwhile, private equity's global M&A market share reached record level.

• Transactions need more time online
• Scenario-based due diligence to become the norm
• VDD to start earlier in the exit process

The German economy is set to shrink by 10% in the three months to June as a result of the COVID-19 pandemic, but the DACH region is yet to see the effect of the pandemic on M&A value following several large transactions announced prior to the outbreak.

• Deal value down by 18.8% YTD, Q4 numbers plummet
• Nestle Skin Health, Bayer Animal Health carve-outs dominate top deals
• Private equity exits expected to rise in 2020

We've put together all the insights from the 2019 Swiss M&A and Private Equity Forum in case you missed the event. Presentations include the macro-outlook for corporates and lessons learnt in M&A.

Dealmakers in Switzerland remain confident of a strong deal flow sustained by high levels of dry-powder but are starting to take a more cautious approach and conduct more case-by-case assessments of economic and political risks on planned acquisitions, panellists said during the Swiss M&A and Private Equity Forum on 24th October.

The DACH region saw a softer start to the year, experiencing a dip in deal making, yet still outpacing a subdued M&A market across Europe, according to Mergermarket's 1H19 DACH Trend Summary.

• To make one or two investments per annum
• Niche areas like robotics and energy storage in focus
• Fundraising for third fund to begin 4Q18/1Q19

• Yet to decide on Ufenau IV exit candidate to follow Intelligent Repair Solutions sale
• Ufenau IV with dry powder for bolt-ons and half of Ufenau V for new investments
• Next fundraising at least 18-24 months away

Swiss investment firm Jadeberg Partners is planning to exit all investments from its latest and last fund, Mountain Cleantech Fund II, within the next three years, Managing Partner Juergen Habichler said.

• Schneider + Co and Vantage Education tipped as next potential exits
• “plenty” of dry powder for fund V add-ons

• CGS III fully invested, exits approaching but some add-ons possible
• CGS IV portfolio may swell to seven investments

• Positive lending environment opens doors for deals
• Protectionist measures could threaten larger transactions
• IPO market upbeat after successful flurry in 1H18