Mid Market M&A Turkey 2012


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Mid Market M&A Turkey 2012

  1. 1. Mid Market M&A Review2012 market PE’s are formed. There is still a way toSBB Capital -Sunbelt Network, is an go for both SME owners and PE’s to have aindependent consultancy firm specialized in common understanding, especially onmid market M&A deals headquartered in USA. reporting standards and management styles.Since 2010 the company has been operating in Lots of mid market deals with PEs failed in theTurkish market. Despite the fact that the tortuous due diligence process.process is quite similar to large scaled deals,mid market has its unique dynamics. Similar to Both strategic investors and PE’s ask for thethe difference between a marathon and a 100 detailed business plan of 3-5 years from them race in athletics. target companies. SMEs should prepare a reliable but attractive business plan supportedAlthough M&A is a quite new approach for by last 3 years actual performances. Most ofSME owners and managers, it is blooming SME’s have discrepancies between therapidly among the companies and the investors financial reporting and corporate governance.who find those transactions appealing. To be Thus, it is getting harder for investors toable to follow the fast changing segment evaluate the real performance of thedynamics, and to share the figures with our companies and the process is getting longer.stakeholders, we have decided to publish a Having a longer and complicated dealmid-market M&A report. discussions and not forming a common language can be a reason for deal brake.The perception of “sold for losses” is graduallybeing replaced by the concept of “good We would like to thank all our stakeholders andinvestment opportunity” for target companies. SBB team for their support in putting the MidA partnership model can be implemented with Market report together.various objectives such as accelerating thegrowth, having the competitive advantage,establishing a corporate governance structure Özge Germeyanoğluor being succored from a financial bottle neck, Managing Partneretc. Although the owners still have themotivation of “ Having the full ownership”, they Sunbelt Türkiyetend to perceive M&A’s more positively as they SBB CAPITAL PARTNERSsee the benchmarks of successful M&A dealsin the marketplace, especially corroborated by www.sbbcapitalturkey.comthe second generation in management.The market for large-scale deals is getting tightand the growth opportunities are alreadyexploited. Hence PE’s changed directionthrough mid market companies or new mid
  2. 2. The M&A market has been dominated by theMid Market segment in 2011 in terms of thenumber of closed deals. Mid Market is stillpopular despite the global and local politicaland economical uncertainties. Turkeymanaged to get rid of the effects of globaleconomic crises through new markets in North 46% 54%Africa and its eastern neighbors. However in2012, problems in these markets andeconomical slow down measures of theauthorities have been negatively affecting thefuture expectations and postponement of the Foreign Localinvestment schedules. The effect is clearlooking at the number of closed deals.However the credit rating upgrade in the Q4and another upgrade expectation from adifferent institute in the 2013 has pushedTurkey up in the investment arena. 30%98 mid-market deals were closed in 2012. Thereport covers deals with USD 1-50 millionenterprise value. The average deal size is USD12,4 million in this range. 70%Mid market M&A’s are dominated by strategicinvestors. 70% of the acquirers have strategic Strategic PEmotivation to buy the stakes. 56% of theseinvestments are originated from foreigncountries. Foreign companies targetingminimum risk and faster deployment prefers anacquisition to enter the Turkish market that stillhas a growth potential with attractive 19%consumption figures and niche markets withlow competition. Acquisition 40% 5% MajorityPE investments are low in the market. ThoughSBB Capital Turkey expect this figure will be 50%much higher in the coming years. 69% of PE’s Minortyinvested in Turkish companies in 2012 havelocal offices and a local team. A lot of new PE 36%funds raised targeting SME market with highergrowth rates and unsaturated markets of SMEcompanies.The other differentiating factor of SME M&A Foreign investors have played the leading roledeals is the transferred stake ratio. 76% of the in 2012 with 54% share in deal numbers. Mostacquirers have the full or majority stake in the of the funds came through EU countries whereclosed deals. 31 of the deals are 100% stake Germany and UK have the upper hand. USAsales among 98 deals of the year. that has global leadership in M&A transactionsHaving a sector based overview; , marketing is far below in mid market due to geographicalservices, health, retail, financial services and remoteness and investment size. Middle Eastinternet based operations stand out in terms of is also not a dominant player in the mid marketdeal number. deals mainly due to deal sizes. However it worths to mention that Far East became anwww.sbbcapitalturkey.com SBB Capital Partners
  3. 3. active investor despite geographical proximityand cultural differences in 2012.Country Deal #Germany 11UK 6Swiss 3Italy 3France 3Singapore 3USA 2UAE 2Japan 2The Netherlands 1Austria 1Poland 1 For more information::Russia 1Kuwait 1 SBB Capital PartnersHong Kong 1 Bayar Caddesi Değirmen SokDenmark 1 Derya Sitesi B2 D34 Kozyatağı İstanbulDespite there has been a drastically increase www.sunbeltturkey.comin the potential transaction projects, the deal www.sbbcapitalpartners.comclosing ratio was quite low in 2012. We sunbeltturkey@sunbeltnetwork.comanticipate a better performance in the new yearwith the support of upgraded credit ratio, lowrevenue scheme of alternative investment tools T:+90 216 3625276and the closure of ongoing deals from 2012. F:+90 216 3726634More over in 2013 the investors will turn theirfocus from mature Istanbul to unsaturated Waiver NoticeAnatolian companies. This Report has been prepared for information purposes relating to M&A activities in SME sector. This Report does not purport to be all-inclusive nor to contain all theSBB Capital Türkiye, foresees that the mid information that a prospective investor may require inmarket transactions which are far below the deciding whether or not to invest in SME sector. Each of SBB Capital Turkey and its respective subsidiaries andmarket growth potential in Turkey will boost up associated companies and its respective officers,in midterm. Increasing number of employees and agents expressly disclaims any and all liability which may be based on this Report or suchprofessionally managed SMEs, correct information, and any errors therein or omissions therefrom.preparation and strategic business plans will Transactions data presented in this report are based onease the process in favor of investors. On the information that is readily available in the public domain.orher hand, as the investors get more involved SBB Capital has not conducted any research on the accuracy of the given information. Therefore, SBB Capitalin the Turkish SME market, they got used to Turley does not accept any responsibility as to thethe sector dynamics and risk perception will accuracy or completeness of the data. This report does not cover capital market transactions, IPOs, real estate sales,lighten. PEs will lead the growth in the SME intra-group share transfers and transactions of financialmarket transactions. Currently there is over 30 institutions within the framework of debt restructuring.PEs targeting mid market companies in Recipients of this report are not to construe the contents ofTurkey. Not only the number of PEs but also this Report as legal, business, tax or other advice. Any recipient or prospective investor should not rely upon thisthe size of the funds and the invested Report in making any decision, investment or otherwisecompanies will increase in the near future. and is recommended to perform their own investigation and seek their own independent advice.www.sbbcapitalturkey.com SBB Capital Partners
  4. 4. List of the Deals# Target Sector Acquirer Country Profile Stake1 4129 Marketing WPP UK Strategic Majority Ak-Al Alaplı İplik2 Textile Dinarsu Tekstil Turkey Strategic 100% Tesisleri3 Alartes Enerji Energy Gözde Girişim Turkey PE 51%4 Altın Optik Health Carl Zeiss Vision Germany Strategic 100%5 Anele Logistics Netlog Turkey Strategic 80%6 Ansa Yatırım Financial services Individual Turkey Strategic 100%7 Araklı Enerji Energy Ayen Enerji Turkey Strategic 76%8 ArcedoMonk Socail Gaming 212 Capital Partners Turkey PE -9 Ataman Kozmetik Cosmetic Eczacıbaşı Turkey Strategic 100%10 Aydemir Elektrik Energy Utopya Turizm Turkey Strategic 99%11 Balerin E-trade 212 Capital Partners Turkey PE -12 Başak Traktör Automotive Sanko Holding Turkey Strategic 100%13 Bavet İlaç Medical NBK Capital Kuwait PE 50%14 Bellini Gıda Food Nissin Food Japan Strategic 50%15 Butigo E-trade 212 Capital Partners Turkey PE -16 Cem - Fa optik Health Carl Zeiss Vision Germany Strategic 100%17 Cevher Döküm - Jant Automotive supply ADM Capital Hong Kong PE 46%18 Cloud Arena Internet 212 Capital Partners Turkey PE -19 Colordent Health Hospitadent Grubu Turkey Strategic 100%20 Crispino Retail Gültekin Group Turkey Strategic 100%21 Çınay Kimya Medical Angelini Group Italy Strategic 100%22 Değer Menkul Değerler Financial services Saxo Bank Denmark Strategic 90%23 Doğa Tarım Agriculture Egeli&Co. Turkey PE 90% Oman Insurance ve24 Dubai Grup Sigorta Financial services UAE Strategic 100% Starr Insurance25 Duranlar Tarım Agriculture Mega Polietilen Turkey Strategic 50%26 Eko TV Media Doğan Grubu Turkey Strategic 25%27 Ekomak Industrial Production Atlas Copco Swiss Strategic 100%28 Elsys Software itelligence Germany Strategic 60%29 Ersun Kimya Chemistry KOG Investments Singapore Strategic 100%30 Etiler İnci Büfe Food Karsusan Turkey Strategic 67% Euro Yatırım Menkul Gries & Heissel31 Financial Services Germany Strategic 94% Değerler Bankierswww.sbbcapitalturkey.com SBB Capital Partners
  5. 5. 32 EuroMessage Marketing Doğuş Grubu Turkey Strategic 40% Tiger Global33 Evidea E-trade USA PE - Management34 Evmanya E-trade Doğan Online Turkey Strategic 100%35 Exper Bilgisayar IT Penta Teknoloji Turkey Strategic 67%36 Filmat Consumer Electronics Fuji Film Germany Strategic 100% Universe Capital37 Frigo Pak Food USA PE 29% Partners FU Gayrimenkul Yatırım38 Financial services Pera Capital Turkey PE Majority Danısmanlık A.Ş.39 GAAT International Textile George at ASDA UK Strategic 100%40 Gimsan Gediz İplik Textile Ataç İnşaat Turkey PE 27,78%41 Go Mango Food D.ream Turkey Strategic -42 Grow Fide Agriculture Unal Ailesi Turkey Strategic -43 Gurme Servis Food D.ream Turkey Strategic -44 Gümüşsuyu Halı Textile Modern Halı Turkey Strategic 100%45 HAK Menkul Kıymetler Financial services PhillipCapital Singapore Strategic 100% Antalya Güçbirliği46 Hare Beverage Turkey Strategic 100% Holding47 Hazinem.com E-trade 212 Capital Partners Turkey PE -48 Hemen Kiralık E-trade 212 Capital Partners Turkey PE -49 HSK Air condition Systemair Swiss Strategic 70% Galata Business50 Inploid IT Turkey PE 30% Angels51 Interteks Fair Organization Fiero Milano Italy Strategic 60%52 IQ Travel Tourism Meeting Point Germany Strategic 51% Iron Mountain53 Iron Mountain Arşivleme Services UK Strategic 35% Holdings Universe Capital54 İdaş Bedding USA PE - Partners55 İdefix IT Doğan Online Turkey Strategic 100%56 İpek Optik Optic Essilor International France Strategic 100%57 İstanbul Doors Food D.ream Turkey Strategic 74%58 Jinemed Health Acıbadem Sağlık Turkey Strategic 65% Kaynak Finansal59 Financial services Üs Holding Turkey Strategic 45% Kiralama60 KKT Logistics Netlog Turkey Strategic 100%61 Lidyana.com E-trade Ru-Net Russia PE -62 Life Medya Fuarcılık Fair Organization Tarsus Group UK Strategic 70%63 Maçkolik.com Internet Perform UK Strategic 51%64 Makine Takım Industrial Production Gözde Girişim Turkey PE 30%65 Manajans Marketing WPP UK Strategic 100%www.sbbcapitalturkey.com SBB Capital Partners
  6. 6. 66 Mataş Matbaacılık Printing services VBG Holding Turkey Strategic 47%67 Maxtone Health Amplifon Italy Strategic 51%68 Mikro Ödeme Internet Mediterra Turkey PE Majority69 Mira Menkul Değerler Financial services Renaissance Capital Turkey PE 100%70 Mobilike Internet Madvertise Germany Strategic -71 Mobiliz IT Mediterra Turkey PE -72 Multiyirmisekiz Real estate Altındağ Turkey Strategic 50% Murat Un Sanayi -73 "Buğday işleme Food Interflour Singapore Strategic 100% varlıkları"74 Mürekkep Matbaacılık Printing services Taraf Gazetesi Turkey Strategic 99% VHV75 Nart Sigorta Financial services Germany Strategic 40% Vermogensanlage76 Neredekal.com IT İlab ventures Turkey PE 27,50% CWT Anadolu77 Nova Gümrük Logistics Turkey Strategic 60% Lojistik78 Num Num Food İş Girişim Turkey PE 61,70%79 Opak Optik Health Essilor International France Strategic 51%80 Oracal PVC Orafol Germany Strategic 100%81 Oxygen Consultancy HR advisory Allgeier SE Germany Strategic -82 Perpa Koruma Services Trenkwalder Avustrai Strategic 20%83 Ren Grup Diyaliz Health Fresenius Germany Strategic 100%84 Rito Tohumculuk Agriculture Unal Ailesi Turkey Strategic -85 Sekotek Elektronik Lock Asso Albay Swiss Strategic 100%86 Sigma Danışmanlık Software ASEE Poland Strategic 98,68%87 Silk & Cashmere Retail Eastgate UAE PE 45%88 Sireo Real estate Turkuaz Turkey Strategic 100% Tiger Global89 Sporcum.com E-ticaret USA PE 68,31% Management90 Toksöz Spor Retail İş Girişim Turkey PE 51% Tolina Tarım ve91 Agriculture Egeli&Co. Turkey PE 43,57% Hayvancılık92 Transteknik Teknoloji Consumer Electronics Konica Milota Japan Strategic 100% Universe Capital93 Transtürk Logistics USA PE 75,40% Partners94 Turlog Lojisitik Logistics Borusan Lojistik Turkey Strategic 100% Ultra Görüntüleme95 Health Euromedic Nederlands Strategic 100% Merkezi Galata Business96 Ustaeli.com E-trade Turkey PE - Angels97 Yeda Tora Optik Optic Essilor International France Strategic 70%98 Zirve Gıda Agriculture Doruk Group Turkey Strategic 60%www.sbbcapitalturkey.com SBB Capital Partners