Christopher F. Porter’s Post

Reflecting on 2023: A Year of Tectonic Shifts in M&A Landscape As we step into 2024, it’s imperative to look back at the transformative year that was 2023 in the global M&A arena. The year witnessed a significant dip in global M&A activity, decreasing over 20% from 2022 and hitting the lowest point in a decade. This downturn was accompanied by notable changes in the global Financial Advisor Rankings, with major shifts observed not just globally, but specifically in Europe and Germany. In a break from tradition, J.P. Morgan usurped Goldman Sachs’ long-held dominance in Germany and Europe’s M&A transaction volume. In a remarkable feat, J.P. Morgan outdid Goldman Sachs in Germany by about €15.6 billion in deal volume and led with five additional transactions. Morgan Stanley made a notable leap to third place in the German rankings, trailing closely behind the second place. On the European stage, the top three positions echoed this trend with J.P. Morgan, Goldman Sachs, and Morgan Stanley at the forefront. The transaction sector also experienced significant shifts. Carlsquare made headlines by leading the German M&A market with 34 completed transactions, surpassing Rothschild & Co. Houlihan Lokey, once a frontrunner, now shares the third spot with Rothschild & Co, each completing 33 transactions. A noteworthy mention is the meteoric rise of KBS Corporate Finance, soaring from 303rd place in 2022 to the 5th position with 135 deals in 2023. #MergersAndAcquisitions #investmentbanking #IB

Discover how family offices are increasingly favoring unlisted assets over listed ones and how a US private shares exchange is easing Europe's liquidity issues. Explore Bain's insights on China's IPO reforms and more in private equity trends. #PrivateEquity #FamilyOfficeInvestment #LiquiditySolutions

[2023 results] Edmond de Rothschild reports strong 2023 performance in a year of strategic acceleration. ➡️ Record net inflows: + CHF 11 billion positive in all geographies and businesses. ➡️ Profitable growth: operating profit +41%. ➡️ Major milestones achieved to accelerate growth. Read the press release: https://lnkd.in/e7gbQR23 #Results #Performance #PrivateBanking #AssetManagement

Yesterday, Hogan Lovells Germany, together with the Institute for Law and Finance (Goethe University Frankfurt) and the Deutsches Aktieninstitut, held their splendid annual Capital Markets & Takeover Conference.   The outlook for dealmaking was a bit mixed. While conditions for public M&A have improved generally, the biggest uptick is expected for P2Ps. Unfortunately, taking private is not a sign of strength but rather of the weakness of the capital market in Germany, in particular for midcaps. #CapitalMarkets #MnA #P2P #TakePrivate

What a thought provoking and educational 11 weeks that was! The #M&A transaction level in 2022 was nearly 45k deals values at some $4.7 TRILLION Dollars. This is despite a drop in the $1bn+ deal segment. The big segments were Natural resources and energy, IT, Healthcare and Financial Services. Huge numbers YET most (>70-90%) fail! Having been involved in #M&A mainly on the #OperationalExcellence side, this course helped me better understand the bigger picture and the opportunities and challenges beyond #PostMergerIntegration. The mix of practical and academic knowledge will continue to help me drive my own #valueaddition to future employers, partners and customers and ensure that #success is delivered. One of the main reasons for M&A failure is lack of planning and focus on the people and the cultural fit. After working worldwide during my career, easy to understand why! If you are considering this for your own professional engagement then please reach out if you want to discuss the good, bad and intensity of the course. I kept my focus through my transition out of #Africa and while on the beach with my family on the Black Sea and now back home in London. Thanks to the insightful Marc Kitten, Rudolf Falat and Henry H. Ngan, MBA, CPA plus all the support team who did a great job of looking after us and understanding our life and work conflicts. Marc Kitten is an engaging speaker and master in his profession. His talks through the case studies of Porsche AG and Volkswagen Group, AxelSpringer and SeLonger.com, Philip Morris and The Kraft Heinz Company and ABN AMRO Bank N.V. and Fortis were very engaging and added a lot to my own research and analysis of these interesting business transactions. Now back to the #energytransition and looking for my next challenge. We will certainly see much M&A activity in this space going forward. I have noted some recommended reading in the comments:

“London's capital markets are dead." "Companies can always achieve higher valuations in the US." "What you really need to do is get on the S&P 500." Right? Not always.   We use data to myth-bust soundbite conventional wisdom and explain why companies (especially non-US ones) should consider the London Stock Exchange – while still being able to access US capital. Co-authored by Roberta Markovina and Yuji Huang from our US Securities practice and Julian Stanier and Gareth Jones from our UK Corporate Finance practice, the article is now available on Out-Law News from Pinsent Masons.

I am excited to share my contribution to a compelling discussion in a recent Süddeutsche Zeitung article, penned by Ann-Kathrin Nezik. This feature, making headlines on the front page, delves into the strategic resilience and growth mindset of German companies investing in the US market, against the backdrop of political uncertainties. As the founder of 2022consulting.com, a consultancy firm specializing in Foreign Investments, Mergers & Acquisitions, and Private Equity, the insights from this article resonate deeply with our mission to navigate complexities and unlock opportunities for our clients in dynamic markets. The piece, titled "Wer hat Angst vor Donald Trump?" ("Who's Afraid of Donald Trump?"), underscores the critical viewpoint that, despite potential political shifts, the US remains a key market for German businesses. With over 91% of surveyed German companies anticipating growth in 2024, it's clear that confidence in the US market's potential is unwavering. Our work at 2022consulting.com aligns with this sentiment, emphasizing the importance of strategic foresight, adaptability, and the pursuit of growth opportunities in every economic climate. The article highlights a pragmatic approach to investment and business expansion, reflecting our ethos of turning challenges into opportunities. The discussion at Deutsche Bank's New York gathering, as highlighted in the article, further reinforces the notion that the US market's allure transcends political cycles, offering a robust environment for business and investment. This narrative is more than just numbers and projections; it's a testament to the strength of German-American business relations and the enduring opportunities present in the US market. As we continue to guide our clients through their investment journeys, the insights from this article serve as a valuable touchstone. I invite you to delve into this fascinating article and join the conversation on navigating the intricacies of international investments and market strategies. Your thoughts and perspectives on this topic are highly valuable. https://sz.de/1.6356333 #ForeignInvestment #MergersAndAcquisitions #PrivateEquity #USMarket #StrategicInsights #2022consulting #SüddeutscheZeitung

Unlocking the Future: Private equity activity is poised for significant growth as alignment between buyers and sellers on valuation strengthens. Insightful words from Majid Ishaq, Co-Head of UK at Rothschild & Co. Change is underway, and the next six months hold the promise of a dynamic and thriving landscape for private equity. At Blackmore Partners, we navigate these shifts with strategic precision and look forward to shaping the future of finance. Check out successful stories: https://buff.ly/406GhTb #PrivateEquity #ValuationAlignment #FutureFinance #BlackmorePartners

“London's capital markets are dead." "Companies can always achieve higher valuations in the US." "What you really need to do is get on the S&P 500." Right? Not always.   We use data to myth-bust soundbite conventional wisdom and explain why companies (especially non-US ones) should consider the London Stock Exchange – while still being able to access US capital. Co-authored by Roberta Markovina and Yuji Huang from our LSE US Securities practice and Julian Stanier and Gareth Jones from our UK Corporate Finance practice, the article is now available on Out-Law News from Pinsent Masons (Why companies should consider the London Stock Exchange (pinsentmasons.com)).

Watch our Global Head of M&A Bill Curtin on Bloomberg’s Wall Street Week Daily segment with David Westin and Romaine Bostick as Bill discusses his measured optimism for the M&A market over the next 12 months. Bill describes how despite regulatory and financing headwinds in the market, there is a pipeline of activity building and plenty of deals ready to take off in 2024. From AI to EVs, Bill, David and Romaine discuss how investment in these areas will require non-organic activity in the form of M&A. Watch the full interview by clicking the link below. #MergersAndAcquisitions #Outlook #AIInvestment #EnergyTransition