In den USA haben sich in den letzten Jahren 7.000 Unternehmen von der Börse verabschiedet. Für sie ist der deutsche Mittelstand ein Beispiel zur internationalen Ausrichtung
3. Outlook 2013: Top 3 Barriers Against Investments
Source: FT-Hogan Lovells survey of global firms November 2012
Prof. Dr.-Ing. Kai Lucks
4. Outlook on Global Firms 2013: M&A Has Lost its Top Priority
Source: FT-Hogan Lovells survey of global firms November 2012
Prof. Dr.-Ing. Kai Lucks
5. The 21 Leading Export Nations in 2011
Exports in billion USD
2000
1899
1800
1600
– Bavaria is in place 26 among the large export nations
1481
– The export quota in the Munich region is 60 %
1474
1400
1200
1000
823
800
600
660
597
555
523
522
476
473
456
452
400
410
365
350
308
297
297
285
226
200
0
Source: Chamber of Industry and Commerce
Prof. Dr.-Ing. Kai Lucks
Seite 5
10. The European Diversity is a Result of Different Ways
to Deregulation of Markets
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
UK
Norway
Sweden
Germany
California
Chile
Argentina
Spain
Victoria
Italy
New Zealand
Alberta
Prof. Dr.-Ing. Kai Lucks
Portugal
France
11. How is Economic and Political Uncertainty in the Eurozone
Impacting on Your Plans for Growth?
Source: FT-Hogan Lovells survey of global firms November 2012
Prof. Dr.-Ing. Kai Lucks
12. Europe is the Most Important Trading Partner for the US
Inter continental trading volume 2012 up to September:
485 Bio US$
390 Bio US$
CHN
USA
79 Bio US$
EU
200 Bio US$
US Exports 2012 up to September:
“There
is now, for the first time in years, a serious drive towards an E.U.U.S. free-trade agreement,” (Karel De Gucht, the European trade commissioner, said in
Dublin in November)
The chamber estimates that an agreement that eliminated tariffs and
other barriers between the United States and Europe could add 1.5
percentage points to growth on both sides of the Atlantic.
Source: New York Times By Jack Ewing, November 25, 2012
Prof. Dr.-Ing. Kai Lucks
13. 2013 M&A increasingly driven by depressed valuations
and a glut of high-quality assets
Deal Drivers: 2013 Expectations vs. Last Year‘s Results
Source: Freeman Consulting Services & Thomson Reuters, November 2012
Prof. Dr.-Ing. Kai Lucks
14. European M&A in 2013 to be dampened by Eurozone
crisis, but Americas and APAC largely escape fallout
Impact of Eurozone crisis and resulting banking turmoil
Source: Freeman Consulting Services & Thomson Reuters, November 2012
Prof. Dr.-Ing. Kai Lucks
15. Renewed interest in foreign assets means active crossborder M&A Market should continue
Most attractive regions for acquisitions
Source: Freeman Consulting Services & Thomson Reuters, November 2012
Prof. Dr.-Ing. Kai Lucks
16. From a User Economics View Europe is Diverse in (a) Structure,
(b) Profitabilities, (c) Buyer Segments & (d) Labour Costs
Western Sphere
Core
North Track
r
nte
Ce
Eastern Sphere
North Track
k
loc
B
South Track
MMI Analysis
South Track
Western Sphere
Core
Prof. Dr.-Ing. Kai Lucks
Eastern Sphere
20. Statistical Figures
Space
01.01.2011
in km2
in %
357.
100
Bavaria
71.
Upper
Bavaria
18.
Federation
Inhabitants
30.06.2011
in
Mio.
GDP
2010
Jobless
2011
Consumption Index
2012
in %
in Mrd.
€
in %
82.
100
2.500
100
7,1 %
100,0
20
13.
15
442
18
3,8 %
108,7
5
4,
5
185*
7*
3,6 %
123,0
*Anteilig berechnet auf Basis von 2009.
Quellen: Statistisches Landesamt Bayern, Arbeitsagentur, GfK Geomarketing sowie
eigene Berechnungen.
Stand: 24.01.2012
Prof. Dr.-Ing. Kai Lucks
Page 20
21. Germany‘s Main Import Sectors are Chemicals, Crude Oil & Gas,
Machinery and Electrical Engineering
Prof. Dr.-Ing. Kai Lucks
22. Germany‘s Main Export Sectors are Machinery, Road Motor
Vehicles, Chemicals and Electrical Engineering
Prof. Dr.-Ing. Kai Lucks
23. The United States are Germany‘s No.2 Investment Region
Prof. Dr.-Ing. Kai Lucks
24. The USA have invested 24% of all FDI Projects in Germany since
2007. The majority of FDI projects consisted of ICT & Software.
Prof. Dr.-Ing. Kai Lucks
25. In 2011, Germany Imported Primarily Chemicals, Machinery and
Pharmaceuticals from the US.
Prof. Dr.-Ing. Kai Lucks
26. In 2011, US Investments Amounted to 178 Projects. Bavaria and
Hessen are the Top Destinations for US Investors.
Prof. Dr.-Ing. Kai Lucks
27. The ICT & SW Sector is Highly Attractive to US Investors. Sales,
Marketing & and Support Account for the Majority of all FDI Projects.
Prof. Dr.-Ing. Kai Lucks
30. SME‘s in Germany: Share of Overall Economy
SME-definition according to IfM: up to 499 Employees and 50 Mio € Sales
Prof. Dr.-Ing. Kai Lucks
31. Potentials of German Companies
Company Size
Type
Number of
Employees
Overall Sales
Volume in Mio €
Number of
Companies
Smallest
Companies
1-9
<= 1
1 Mio.
Small
Companies
10 - 49
5 – 25 Mio
100.000
Medium Sized
Companies
50 - 249
26 - 49
20.000
Large Scale
Companies
250 - 500
50 - 249
7.000
> 500
>= 250
500
Big Companies
Source: Statistisches Bundesamt, Umsatzsteuer Fachserie 14 Reihe 8.- ifm Bonn 2002.- Estimations of MMI
Prof. Dr.-Ing. Kai Lucks
32. German small and medium-sized enterprises enjoy global
recognition, strengthening the brand of the ‘German Mittelstand’
1.Germany’s small and medium-sized companies (Mittelstand) experience a strong
reputation globally.
2.Small and medium-sized companies are the social and economic backbone of
the German economy.
3.By European comparison, Germany’s SMEs are highly efficient at moderate
labor costs.
4.German enterprises are the foundation of manufacturing among medium-sized
companies in the EU.
5.Germany’s medium-sized companies hold the top position in many of the EU’s
manufacturing industries.
6.Small and medium-sized companies represent 99.7% of all companies in
Germany and employ almost 80% of all employees.
7.Medium-sized companies in Germany have a much larger influence on the national
economy than small companies.
8.More than 340,000 German SMEs benefit from exports to global markets.
9.German SMEs are highly active in research and development, creating
competitive “Made in Germany” innovation.
10.The German government strongly supports innovation created by small and
medium-sized companies – welcoming foreign investors as well.
Prof. Dr.-Ing. Kai Lucks
33. Germany’s small and medium-sized companies (Mittelstand)
experience a strong reputation globally.
Prof. Dr.-Ing. Kai Lucks
34. Small and medium-sized companies are the social and economic
backbone of the German economy.
With about 3.6 million registered small and medium sized
companies (SME), the German Mittelstand comprises 99.7% of
all enterprises. These companies each employ a staff of less
than 500 employees
Almost 21 million people in Germany work for SMEs. With a
share of 79.6% of all employees, the German Mittelstand is a
major employment driver.
German SMEs contribute strongly to the national economy’s
success. Their share of net value added amounts of 51.3%*.
Note: data refer to 2009, *ifm estimation; Source: IfM Bonn 2012
Prof. Dr.-Ing. Kai Lucks
35. By European comparison, Germany’s SMEs are highly efficient
at moderate labor costs.
Prof. Dr.-Ing. Kai Lucks
36. German enterprises are the foundation of manufacturing among
medium-sized companies in the EU
Gross value added
of medium sized
enterprizes in EU
Manunfacturing
2009 in %
Note: *companies with 50 to 250 employees according to EU-definition, **2008 data; Source: Eurostat 2012
Prof. Dr.-Ing. Kai Lucks
37. Germany’s medium-sized companies hold the top position in
many of the EU’s manufacturing industries.
Gross value added of Medium-Sized Enterprises* in selected EU manufacturing industries
(2009, in %) *
Note: *companies with 50 to 250 employees according to EU-definition, 2008 data; Source: Eurostat 2012
Prof. Dr.-Ing. Kai Lucks
38. Small and medium-sized companies represent 99.7% of all
companies in Germany and employ almost 80% of all employees.
Economic Influence of German SMEs by Share of …
(2009)
Source: Federal Statistical Office 2011, ifm Bonn 2011
Prof. Dr.-Ing. Kai Lucks
39. Medium-sized companies in Germany have a much larger
influence on the national economy than small companies.
Medium-Sized* Companies in Germany (2009)
Note: *Medium-sized companies employ between 10 and 499 employees and generate an annual turnover between EUR 1-50 m, according to ifm-definition.
Small companies employ up to 9 employees and generate a turnover of up to EUR 1 m. Source: Federal Statistical Office 2011 .
Prof. Dr.-Ing. Kai Lucks
40. More than 340,000 German SMEs benefit
from exports to global markets.
Exporting SMEs in Germany by Sector
(2009)
German SMEs generated an export
turnover of EUR 177 bn in 2009. More
than 78% of that turnover was realized in
manufacturing and wholesale & retail
trade.
More than 41% of all medium-sized
enterprises in Germany benefit from
global markets through exports. Almost
12% of their turnover comes from
business abroad.
Export activities of German companies
are strongly promoted by governmental
organizations, e.g. Germany Trade &
Invest.
Source: ifm Bonn 2011, Federal Statistical Office 2011
Prof. Dr.-Ing. Kai Lucks
41. German SMEs are highly active in research and development,
creating competitive “Made in Germany” innovation.
R&D Expenditures and Number of Personnel in SMEs
(< 500 employees)
Note: *CAGR = compound annual growth rate, Source: Stifterverband 2012, IW Dienst 2011.
Prof. Dr.-Ing. Kai Lucks
42. The German government strongly supports innovation created by
SME companies – welcoming foreign investors as well.
Source: Federal Ministry of Economics and Technology
Prof. Dr.-Ing. Kai Lucks
43. The Internal Conditions for M&A Have Improved
But External Barriers Have Increased
Prof. Dr.-Ing. Kai Lucks
44. The ‚German Mittelstand‘ is different
American SME Company
German ‚Mittelstand‘
Huge homogenious home
market
Smaller national home
market
Shorter term performance
orientation
Long term performance
orientation
Open to M&A
M&A largely seen as risk
Long term R&D seen as
risky
Dedicated to long term
orientated R&D
MBO, MBI more frequently
Family succession preferred
Present in a few different
national markets
Present in 10 out of 27
different national markets
One (few) country
governance systrem
Multi-country governance
system
Low cost source in Mexico
at 1000 miles away
Low cost country at 100 km
distance
Prof. Dr.-Ing. Kai Lucks
46. German M&A Midmarket Deal Index MidMax
Market peaked in 2007 – afterwards coming down by 70 % (deals) /
down by 47% (index)
Prof. Dr.-Ing. Kai Lucks
47. The German Mid M&A market shows little density
and is less mature than other leading markets
high
NDL
USA
GBR
Maturity
in M&A
GER
Density in M&A
Source: MMI Analysis
Prof. Dr.-Ing. Kai Lucks
high
48. The German Mittelstand is Active in China – and Vice Versa
5.000 German
Companies having
manufacturing
activities in China
6.000 Chinese
Companies operating
in Germany
Prof. Dr.-Ing. Kai Lucks
49. Auch kleinere Projekte können komplexe
Herausforderungen darstellen:
Beispiel: Hybridmodell bestehend aus Projektstufen und durchgängigen Prozessen
Strategy
Check
Path
Screen
Exploration
Due
Diligence
Busin.
Case
Contracts
1
Information Process
3
Measures Planning Process
4
Valuation Process
5
Communication & Change Process
6
100
Days.
Legal Process
2
Integr
Prep.
Controlling Process
Negotiation
Permission
Readiness at
Closing
Prof. Dr.-Ing. Kai Lucks
One
Year
51. 10 Reasons for Bavaria
1.
An unmatched location in Central Europe
2.
Gateway to Central and Eastern Europe
3.
Most modern energy, transportation and
telecommunications infrastructure
4.
Highly-qualified, motivated employees
5.
World-renowned universities and research
institutions
6.
High-tech clusters with a bright future
7.
Strong business partners
8.
Pro-active economic policies
9.
Targeted support services for potential
investors
10. Work where others vacation
Prof. Dr.-Ing. Kai Lucks
52. Stable German Economy
• Strong expansion after Financial crisis in 2011 continued.
• Dynamic economic growth of 3,7% in 2010 and 3% in 2011.
• State institution‘s consumption stable, at year-end 2011 slightly
reduced.
• National demand becoming an important growth motor in 2011.
• Employment situation with continuous positive development.
Prof. Dr.-Ing. Kai Lucks
53. Important Foreign Investments in Germany
• Worldwide important investment location. No 5 worldwide (2010)
• Greenfield new investments on high level and stable
• Between 2000 and 2009 steady annual growth of foreign direct
investments: +5% p.a.
• Most important industries for foreign investments: Information &
communication technologies, software & services, automotive,
machine building, chemistry.
Prof. Dr.-Ing. Kai Lucks
54. Growing Foreign Trade from Germany
• Demand from established exportation goods customers (EU, USA)
slightly shrinking. Asian requests for German quality steadily
growing
• Especially expectations for consumer goods continue to be positive
for foreign trade
• Exports growing double digit in 2010, in 2011 +8,2%. Prognosis for
2012 growht stable but smaller
• Qualitatively high value and specialized products of German
companies ensure strong position in global export markets
Prof. Dr.-Ing. Kai Lucks
60. Bavaria in Facts & Figures
• Bavarian GDP of € 444.8 Bio is larger than those of 20 of the EU 27
member states
• GDP per capita amounts to € 35.530 – well above Germany
• Main Hubs are Munich and Nuremberg – two of the world top-ranked
metropolitan areas
• Bavaria‘s business community shows a great diversity of size and sector:
Allianz, Siemens, BMW, Audi, EADS, Adidas, Puma and MAN & large
number of Small & medium enterprises
• Service sector constitutes an especially strong part of Bavaria‘s business
community: largest German insurance community, second largest
banking one
• Tourism: one of the world‘s favorite places to visit
• State‘s infrastructure – high capacity, ultra-reliable grids for
transportation, highways, telecommunication and energy
• Education, research and development: more than 3% of Bavaria‘s GDP
goes to R&D
Prof. Dr.-Ing. Kai Lucks
61. Bavarian Exports and Imports with China
Bavarian imports from China
Bavarian exports to China
in million Euro
in million Euro
14000
11800
10558
10000
10000
8000
6746
8000
7206
11156
8842
6916
6000
5641
6000
4000
12816
12000
11643
12000
13692
14000
14214
4960
3824
4000
2000
2000
0
0
2005
2006
2007
2008
2009
2010
2011
2005
2006
2007
2008
2009
2010
2011
Source: Chamber of Industry and Commerce of Bavaria
Prof. Dr.-Ing. Kai Lucks
Seite 61
62. Bavarian Exports and Imports with Hongkong
Bavarian imports from Hongkong
Bavarian exports to Hongkong
in million Euro
1000
865
900
800
929
500
407
400
749
559
617
359
348
696
700
600
in million Euro
307
594
300
273
500
268
217
400
200
300
200
100
100
0
0
2005
2006
2007
2008
2009
2010
2011
2005
2006
2007
2008
2009
2010
2011
Source: Chamber of Industry and Commerce
Prof. Dr.-Ing. Kai Lucks
Seite 62
63. Technology Cluster Initiative Bavaria
Mobility
Material
Development
Mankind and
Environment
Infotec &
Electronics
Services &
Media
Automotive
New
Materials
Biotechnology
Infocom
Technology
Financial
Services
Rail
Chemistry
Medical
Technology
Sensors
Media
Logistics
Nanotechnology
Energy
Power
Electronics
Environmental
Mechatronic
Automation
Aerospace
Forest &
Wood
Nutrition
Source: Bavarian Financial Institute
Prof. Dr.-Ing. Kai Lucks
66. There are Different Promising Market Entry Paths to Germany
Green field
Brown field
2nd tier
component
supplier
1st tier
/system
supplier
OEM &
Brands
M&A
Prof. Dr.-Ing. Kai Lucks
67. Coverage of the Value Chain:
Building up Strategic Positions
Driver for national market share
from business start…
Global
License
Sourcing
National
Suppliers
R&D
Assembly
Manufact
Distributors Third party
Sales
Own
Components
Own
Patents Manufacturing Salesforce
Service
Own
Fleet
…to building up of national lead positions
Prof. Dr.-Ing. Kai Lucks
67
68. Market Positions versus Earning Positions
++
Average earnings
from business
M&A-entry resulting in
profitable No3-position
0
0
Nr. 1
Nr. 2
Nr. 3
Organic market
entry stimulated
by price wars
and ending in
undercritical
market shares
Nr. 4
and worse
Market position
Attractive results only through market positions from No1 to No 3
Siemens Database – MMI Analysis
Prof. Dr.-Ing. Kai Lucks
68
69. The German ‚Mittelständler‘ is Tied Into a Dense Network
Social Network
Industry Community
State‘s Organizations
BDI
Germany
Invest
Unions
Cities &
Areas
Competitive
Cluster
Car
Makers
Manufact
Automat
Industrie
Verbände
SME
Suppliers
Invest in
Bavaria
10.000
Consultants
1000 M&A
Boutiques
Services
Network
Fraunhofer
Hochschulen
Clients
Max Planck
Elite
Universities
Value Chain Network
Universities‘ Network
R&D Network
Foreign enterprises can only be successful if they tie into this network
Prof. Dr.-Ing. Kai Lucks
70. Why to Acquire Companies from the German ‚Mittelstand‘?
1. Huge amount of target companies (1 Mio companies with sales up to 5
Mio € .- 100.000 companies with sales of 5-25 Mio € .- 20.000 companies
with sales of 26-49 Mio € .- 7.000 companies with sales of 50-250 Mio €)
2. SMEs represent 99.7% of all companies in Germany and employ
almost 80% of all employees
3. More than 340,000 German SMEs benefit from exports to global
markets. Many global market leaders (niches and specialties)
4. German SMEs are long term business orientated and highly active in
R&D, creating competitive “Made in Germany” innovation
5. Typically present in a multitude of countries (27 EU member states),
having structures and systems to cover different markets
6. Access to East European low cost suppliers and subsidiaries (wage
differences 10:1) at distances of a few 100 km
7. Investing in German SMEs could enable them to enter into the US and
Chinese markets: attractive complementarity of interests
Prof. Dr.-Ing. Kai Lucks
71. Invest in Bavaria
German Federal M&A Association
Bismarckstraße 24
a.mueller@bm-a.de
Friedberg 61169
Deutschland
e
Pippinstraße 10
D 82131 Gauting
Germany
Prof. Dr.-Ing. Kai Lucks
President‘s Office:
Mrs. Simone Schnell
Phone +49 6031 7386-18
Fax +49 6031 7386info@bm-a.de
Pippinstraße 10
D 82131 Gauting
Phone: +49 89 89328592
Fax: +49 89 89306240
info@merger-mi.de
Editor's Notes
An unmatched location in Central Europe
Bavaria’s ideal geographical location and its role as a key hub of international trade affords quick and easy access to all European markets. Located in the very heart of the European Economic Area (EEA) with nearly half a billion consumers, companies based in Bavaria are ideally placed to access new EEA markets.
Gateway to Central and Eastern Europe
For centuries Bavaria has had close political and economic relations with the countries of Central and Eastern Europe (CEE). Particularly since the enlargement of the EU to the East, Bavaria has established itself as the node between East and West.
Most modern energy, transportation and telecommunications infrastructure
Bavaria’s advanced infrastructure offers investors maximum mobility and flexibility. Be it rail, road, water or air – Bavaria guarantees the speediest possible transport of passengers and goods. Efficient, reliable data and information exchange is ensured by innovative, state-of-the-art information and communications technologies.
Highly-qualified, motivated employees
Only highly qualified and motivated staff with visions and commitment enable companies to produce top quality products and services of worldwide repute. Bavaria’s excellent universities and its unique system of dual vocational training combining theory with on-the-job training for non-academic professions ensure maximum workforce competence.
World-renowned universities and research institutions
11 universities, 17 universities of applied sciences, 11 Max Planck Institutes and 9 institutes of the Fraunhofer Society make Bavaria a world leader in research and development. It also hosts 3 of the 15 German Helmholtz research centers. Bavaria therefore offers the ideal set-up for the development of new technologies and innovative products and services, a reason for Bavaria’s top ranking in German patent registrations.
High-tech clusters with a bright future
Bavaria enjoys a leading position – nationally and internationally – in key technology sectors such as information and communications technology, biotechnology, energy and medical technology as well as satellite navigation. The state government’s Cluster Initiative “Alliance Bavaria Innovative” promotes intensive networking of industry and academia and gives high-tech companies the opportunity to share know-how and develop innovative solutions.
Strong business partners
Bavaria is the home of global players like Adidas, Audi, BMW, EADS, MAN or Siemens. About one third of the 30 companies listed in the DAX share index are based in Bavaria. In addition, there is a dense network of small and medium-sized industrial, trade and service companies throughout the state – thus providing a broad spectrum of innovative suppliers, customers and potential partners for investors.
Work where others vacation
Bavaria is Germany’s favorite holiday and tourist destination and enjoys worldwide appeal. Its breathtaking scenery, rich culture and the proverbial Bavarian way of life attract even the most discriminating, sophisticated professionals and top professionals. Investing, working and living where others go on vacation – that is Bavaria.
Pro-active economic policies
“New products, new businesses, new markets” is the guiding principle of Bavaria’s economic policy. State government and administration policies are dedicated to enterprise-friendly administrative procedures, especially for SMEs, attractive employment conditions and reliability in partnership with business to ensure Bavaria’s global competitiveness.
Targeted support services for potential investors
Invest in Bavaria is the central, single-stop point of contact within the Bavarian Ministry of Economic Affairs for all companies interested in setting up and expanding business units in Bavaria. Our team responds promptly to their specific information, advisory and support requirements