The growing public distress about the corporate world's impact on our environment is driving executives and investors alike to see their activities through an increasingly greener lens. From Dell to Caterpillar to Goldman Sachs, companies of all types and sizes are voluntarily communicating information to stakeholders about their business's impact on the environment.
Hostility could drive strategic behavior. And corporate finance could provide an arena. Competitors, shareholders, credit raters or even governments could initiate the measure. Except for hostile takeovers, this hostile strategic behavior is seldom addressed within strategy frameworks. And is seldom related to a defensive profile or a repulsive strategic move.
The following article is an attempt at identifying the premises and framework of this hostile strategic behavior within corporate finance. The article gives a definition to corporate finance related strategic hostile behavior, explores the motivations, lists the players, analyses the strategies and explores possible defenses. An integrative conceptual and operational model follows.
The article is based on contemporary work on strategy as well as corporate finance. The conclusion, and the ensuing model, could have a far reaching applied value at both strategy formulation and corporate finance levels.
Receivables Finance in the Context of Working Capital Management by Igor ZaxIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd, published a new article, Receivables Finance in Context of Working Capital Management in TRF News (Trade and receivable Finance News, a major publication by BCR).
Editorial comment states “Igor Zax’s article in today’s trfnews, ‘Receivables Finance in the Context of Working Capital Management’, reminds us of the value of looking back at the history of modern supply chains and how working capital management, and hence factoring and supply chain finance, has developed from this. It also reflects on the potential frailty and dangers that over exposure to some supply chain structures can bring.
On late payments he says: “just a couple of weeks delay on 30 day terms increases working capital consumption by one-and-a-half times.” I wonder how many factors use such direct terms in their advertising material. If they do not, perhaps they should consider it, particularly as the trend is for larger companies to use receivables finance, and it is those companies in particular that tend respond well to the use of such analytic sound bites.”
The growing public distress about the corporate world's impact on our environment is driving executives and investors alike to see their activities through an increasingly greener lens. From Dell to Caterpillar to Goldman Sachs, companies of all types and sizes are voluntarily communicating information to stakeholders about their business's impact on the environment.
Hostility could drive strategic behavior. And corporate finance could provide an arena. Competitors, shareholders, credit raters or even governments could initiate the measure. Except for hostile takeovers, this hostile strategic behavior is seldom addressed within strategy frameworks. And is seldom related to a defensive profile or a repulsive strategic move.
The following article is an attempt at identifying the premises and framework of this hostile strategic behavior within corporate finance. The article gives a definition to corporate finance related strategic hostile behavior, explores the motivations, lists the players, analyses the strategies and explores possible defenses. An integrative conceptual and operational model follows.
The article is based on contemporary work on strategy as well as corporate finance. The conclusion, and the ensuing model, could have a far reaching applied value at both strategy formulation and corporate finance levels.
Receivables Finance in the Context of Working Capital Management by Igor ZaxIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd, published a new article, Receivables Finance in Context of Working Capital Management in TRF News (Trade and receivable Finance News, a major publication by BCR).
Editorial comment states “Igor Zax’s article in today’s trfnews, ‘Receivables Finance in the Context of Working Capital Management’, reminds us of the value of looking back at the history of modern supply chains and how working capital management, and hence factoring and supply chain finance, has developed from this. It also reflects on the potential frailty and dangers that over exposure to some supply chain structures can bring.
On late payments he says: “just a couple of weeks delay on 30 day terms increases working capital consumption by one-and-a-half times.” I wonder how many factors use such direct terms in their advertising material. If they do not, perhaps they should consider it, particularly as the trend is for larger companies to use receivables finance, and it is those companies in particular that tend respond well to the use of such analytic sound bites.”
Gaining an understanding of the basics of international economics plays an important part in developing an effective strategy for successfully penetrating the international or globalized market. In deciding upon an effective strategy for market penetration, a company may be constrained by the policies, laws, or other administrative or regulatory procedures which are in force in the host country. Economic considerations related to income, strategies for market penetration, development indicators, and debt will determine the readiness of countries to accept foreign investment and are critical pieces of the analysis that must be undertaken. In addition, in order to successfully compete in a globalized world, a company must navigate these delicate issues relating to sovereignty that will impact on the decision-making process.In reaching the decision to move outside national borders, a company must exercise sound judgment regarding opportunities and risks associated with the economy of the host nation in order to guaranty the success of a proposed international operation.These measurements, classifications, strategies, and development criteria important in the context of international business are often looked upon as secondary to judging financial or accounting realities. Yet, by taking into account these core definitional concepts in developing an investment strategy, businesses will assure success on a wide variety of fronts.
Company BackgroundFor more than a century, General Electric (GE), LynellBull52
Company BackgroundFor more than a century, General Electric (GE), has been a global leader and iconic brand known for innovation and leadership in a wide range of endeavors. Its diver-sified portfolio of products is organized into four strategic business units: energy, technology infrastructure, GE Capital, and home and business solutions.GE began in 1878 when Thomas Edison formed the Edison General Electric Company (EGEC). Though Edison was best known for inventing the first incan-descent light bulb, he also pioneered systems design for generating and distributing electricity, eventually holding over 1000 patents. Within a few years, the rival Thomas Houston Company, which held key patents in the same area, challenged EGEC’s posi-tion in the marketplace. In 1892, the two companies merged, forming General Electric. GE then parlayed the demand for electricity into the invention of home heating, stoves and other appliances, and refrigeration, transforming American households, and went on to become an innovator in myriad fields, from medicine, aviation, and transportation to plastics and financial services. GE created the GE Credit Corporation (later GE Capi-tal) in the wake of the Great Depression to facilitate the sale of household appliances and provide the option of extended payments for consumers. Innovation defined the organization, and the commitment to research and development remained key.1
GE was one of the original 12 companies that formed the Dow Jones Industrial Average, and the only one of those companies that was still part of the DJIA in 2012. GE was also recognized for cultivating leaders such as Charles Wilson, Ralph Cordiner, Fred Borch, Reginald Jones, and John Welch.2 In the early 1970s under Fred Borch, GE was one of the first companies with a diversified infrastructure to formalize strategic planning at both corporate and business unit levels with its creation of strategic busi-ness units.3GE always saw itself as striving to create a world that worked better, “making what few in the world can, but everyone needs.”4 The company’s strategic philosophy centered on innovation, superior technology, and demonstrating leadership in growth markets. GE sought to maintain a strong competitive advantage through innovation, smart capital allocation, and solidifying customer relationships. The strategy also included transition-ing from an industrial conglomerate to an infrastructure leader to maximize the core strengths of its existing businesses. Diversification and expansion of its business port-folio was a central focus, designed to minimize volatility and create stability through varying growth cycles. Another facet of GE’s strategy was to invest for the long-term in high-growth market opportunities that were closely related to its core businesses. For instance, in 2010 the company launched the GE Advantage Program that focused on process excellence and innovation to improve margins in industrial projects.5
One of GE’s biggest oper ...
The theme for this quarter is momentum meets uncertainty. The upward trend in crude oil, natural gas, LNG and refined product prices that began in Q1 continued into Q2. Crude oil markets began the quarter just below $100/bbl and have closed below that level on only two days since late April. As we begin Q3, there are increasing concerns about the health of the global economy and how that might affect oil and gas demand.
Quarterly analyst themes of oil and gas earnings, Q1 2022EY
Financial questions continued to attract the most attention of the analyst community, with major focus on how companies will respond to the war in Ukraine, elevated commodity prices and improved cash flows. Strategic questions focused on how the changing geopolitical environment will affect capital allocation in the short and long term. Operationally, all eyes were on the capacity of companies to step up asset utilization and bring new projects to market quickly. Explore the latest EY quarterly analysts themes.
Gaining an understanding of the basics of international economics plays an important part in developing an effective strategy for successfully penetrating the international or globalized market. In deciding upon an effective strategy for market penetration, a company may be constrained by the policies, laws, or other administrative or regulatory procedures which are in force in the host country. Economic considerations related to income, strategies for market penetration, development indicators, and debt will determine the readiness of countries to accept foreign investment and are critical pieces of the analysis that must be undertaken. In addition, in order to successfully compete in a globalized world, a company must navigate these delicate issues relating to sovereignty that will impact on the decision-making process.In reaching the decision to move outside national borders, a company must exercise sound judgment regarding opportunities and risks associated with the economy of the host nation in order to guaranty the success of a proposed international operation.These measurements, classifications, strategies, and development criteria important in the context of international business are often looked upon as secondary to judging financial or accounting realities. Yet, by taking into account these core definitional concepts in developing an investment strategy, businesses will assure success on a wide variety of fronts.
Company BackgroundFor more than a century, General Electric (GE), LynellBull52
Company BackgroundFor more than a century, General Electric (GE), has been a global leader and iconic brand known for innovation and leadership in a wide range of endeavors. Its diver-sified portfolio of products is organized into four strategic business units: energy, technology infrastructure, GE Capital, and home and business solutions.GE began in 1878 when Thomas Edison formed the Edison General Electric Company (EGEC). Though Edison was best known for inventing the first incan-descent light bulb, he also pioneered systems design for generating and distributing electricity, eventually holding over 1000 patents. Within a few years, the rival Thomas Houston Company, which held key patents in the same area, challenged EGEC’s posi-tion in the marketplace. In 1892, the two companies merged, forming General Electric. GE then parlayed the demand for electricity into the invention of home heating, stoves and other appliances, and refrigeration, transforming American households, and went on to become an innovator in myriad fields, from medicine, aviation, and transportation to plastics and financial services. GE created the GE Credit Corporation (later GE Capi-tal) in the wake of the Great Depression to facilitate the sale of household appliances and provide the option of extended payments for consumers. Innovation defined the organization, and the commitment to research and development remained key.1
GE was one of the original 12 companies that formed the Dow Jones Industrial Average, and the only one of those companies that was still part of the DJIA in 2012. GE was also recognized for cultivating leaders such as Charles Wilson, Ralph Cordiner, Fred Borch, Reginald Jones, and John Welch.2 In the early 1970s under Fred Borch, GE was one of the first companies with a diversified infrastructure to formalize strategic planning at both corporate and business unit levels with its creation of strategic busi-ness units.3GE always saw itself as striving to create a world that worked better, “making what few in the world can, but everyone needs.”4 The company’s strategic philosophy centered on innovation, superior technology, and demonstrating leadership in growth markets. GE sought to maintain a strong competitive advantage through innovation, smart capital allocation, and solidifying customer relationships. The strategy also included transition-ing from an industrial conglomerate to an infrastructure leader to maximize the core strengths of its existing businesses. Diversification and expansion of its business port-folio was a central focus, designed to minimize volatility and create stability through varying growth cycles. Another facet of GE’s strategy was to invest for the long-term in high-growth market opportunities that were closely related to its core businesses. For instance, in 2010 the company launched the GE Advantage Program that focused on process excellence and innovation to improve margins in industrial projects.5
One of GE’s biggest oper ...
The theme for this quarter is momentum meets uncertainty. The upward trend in crude oil, natural gas, LNG and refined product prices that began in Q1 continued into Q2. Crude oil markets began the quarter just below $100/bbl and have closed below that level on only two days since late April. As we begin Q3, there are increasing concerns about the health of the global economy and how that might affect oil and gas demand.
Quarterly analyst themes of oil and gas earnings, Q1 2022EY
Financial questions continued to attract the most attention of the analyst community, with major focus on how companies will respond to the war in Ukraine, elevated commodity prices and improved cash flows. Strategic questions focused on how the changing geopolitical environment will affect capital allocation in the short and long term. Operationally, all eyes were on the capacity of companies to step up asset utilization and bring new projects to market quickly. Explore the latest EY quarterly analysts themes.
EY Price Point: global oil and gas market outlook, Q2 | April 2022EY
The theme for this quarter is rearrangement. The loss, or potential loss, of Russian oil and gas supplies is forcing producers, refiners and traders to rethink the flow of crude oil and refined products from the wellhead to the gas pump in light of sanctions, potential sanctions and the risk of reputational damage. Countries, companies and consumers will all be searching for ways to adapt, and the outcome of the race to bring alternatives to market could alter the global energy landscape for years to come.
It is likely crude oil and LNG prices will remain elevated for some time. The process of diverting Russian oil through countries unwilling to sanction it will take time and there is little indication OPEC members are willing (or able) to increase production to make up for the loss of Russian crude. Spare capacity sat at 3.7 mbpd at the end of 2021, just above where it was in January 2020. Currently, sanctioned Venezuelan and Iranian production (about 3 mbpd below their peak) could fill the gap, but political and commercial obstacles remain. At today’s prices, US shale production is attractive, but the fastest the industry has been able to grow is between 1mbpd and 2mbpd per year. The LNG infrastructure was already stretched before the war in Ukraine and there is little prosect of finding new supplies soon.
As the largest buyer of Russian energy, Europe will be the epicenter. There is a deeply embedded bias there in favor for renewable energy, and the current crisis is certain to result in an all-out effort to accelerate the build-out of wind and solar power. The capacity to add new green energy is limited though by the project pipeline and supply chains for solar panels and wind turbines, and it is likely that much of the shortfall will be made up with the new LNG infrastructure.
EY Price Point: global oil and gas market outlookEY
As the last quarter of the second pandemic year draws to a close, we continue to see heightened contrast
between the medical and economic points of view. While COVID-19 cases are close to their all-time highs, so
are equity prices, and a leading investment bank declared (on 2 December, 2021 after the Omicron outbreak in South Africa) that it was “optimistic about the possibility of a vibrant 2022.” When news of the variant hit in
late November, the markets were rocked by the prospect of yet another round of local mobility restrictions and
an interrupted return to normal international travel patterns, on top of the Biden Administration’s announced
release of 50 million barrels of crude from the US Strategic Petroleum Reserve. So far though, with OPEC
standing by its planned gradual return to normal production, oil prices have stabilized, albeit below where they
were in mid-November. Henry Hub prices, always at the mercy of the weather, responded predictably to a
warmer-than-normal early winter in the US, falling from US$6.60/MMBtu in early October to below
US$4.00/MMBtu by mid-December. In Europe and Asia, following a short reprieve at the start of the quarter,
piped natural gas prices have spiked again on concerns triggered by Russian troop buildups on the Ukraine
border and uncertainties surrounding the Nordstream 2 pipeline. Looking forward, OPEC and the U.S. Energy
Information Administration (EIA) in their last forecasts of the year both projected that 2022 oil demand would
be above what we saw in 2019. Although time will tell if those forecasts are realized and other events could
intervene, the response to new virus outbreaks is well-practiced and the trade-off between public health and
economic reality has tipped toward a cautiously optimistic view.
EY Price Point: global oil and gas market outlook, Q2 April 2021EY
The theme for this quarter is governed. Apparent market balance at prices that could be sustainable is the product of calculated choices by market leaders and the cooperation of those who follow them. Economics played their customary role as well, with capital scarcity in North America taking about 2 million barrels per day out of the market, about half of the remaining gap in demand. While inventories are close to their pre-COVID-19 levels, there is still uncertainty. The resolution of the pandemic is in sight, but timing is unclear. Vaccine distribution in the US is having an impact but Europe is struggling to contain a third wave of infections. The taps have opened on economic stimulus, but it remains to be seen if policymakers have done enough or if they have overshot the mark.
The shape of the crude oil forward curve has fundamentally changed since the end of the last quarter. In late December of last year, the Brent forward curve was gradually increasing while today, the curve is backwardated. This is a clear sign that the market sees a short-term dynamic that is disconnected from the medium-to-long-term fundamentals. The lasting impact of the COVID-19 pandemic remains to be seen. While many have opined that COVID-19 marks a turning point in energy transition, the IEA recently released a five-year forecast of oil demand that shows steady growth, albeit at rates that are below historical expectations.
Gas markets are a paradox. At the Henry Hub and at LNG destinations, demand grows, investment lags and prices will occasionally attract attention. Traders, so far though, are unconvinced and futures prices don’t indicate imminent scarcity at any link in the value chain.
EY Price Point: global oil and gas market outlookEY
We enter 2021 on a note of cautious optimism for global health, the world economy, and the oil and gas markets. The first weeks of December brought approval in the US and the UK of the first of several COVID-19 vaccines. The speed with which vaccine development occurred is unprecedented, but certainly welcome. In the weeks following the early November announcement of 90+% effectiveness by the manufacturer of the first approved vaccine, the price of WTI crude oil increased by US$10/bbl to US$48/bbl, the highest level since early March. Sustainability hasn’t returned yet, and whatever time it takes to get the world to normal, it will take even longer for normalization within the oil and gas markets. Inventories remain at historically high levels and, optimistically, it will take until April before inventory returns to levels observed in the preceding five years. That’s an estimate, and there has obviously been some difficulty properly calibrating the expectations of how balance will return and how long it will take. In late November, OPEC met to adjust its output plans because of the anemic rebound in demand. In mid-December, the IEA lowered its demand forecast for 2021 due mostly to continued sluggishness in aviation fuel demand.
A mild winter has interrupted a recovery in North American natural gas prices after a run-up motivated by curtailed capital expenditures, upstream activity and production. After an initial meltdown, with cargo cancellations and dramatic price reversal, LNG markets have made a remarkable comeback, and the spread between Asia and Henry Hub has reached a level we haven’t seen in almost three years. It may be the case that interruption in FIDs has brought us to the cusp of a balance that can support reliable returns.
EY Price Point: global oil and gas market outlook (Q4, October 2020)EY
Oil and gas prices have recovered steadily from their lows and are relatively stable, but that stability is supported by the combination of purposeful withholding of production by oil-producing countries and economic stress on upstream independents. Oil prices closed the quarter roughly where they started it, while refining spreads were down slightly. LNG spreads were substantially higher at the end of Q3 than they were at the beginning of the quarter but are still roughly half of what is generally thought of as sustainable.
Going forward, the market will be looking closely at how the economy and demand respond to new developments with respect to a potential COVID-19 vaccine and the US election.
EY Price Point: global oil and gas market outlookEY
As we close the second quarter of 2020, in most of Europe and Asia, the first (and hopefully last) wave of the COVID-19 crisis appears to be abating. In the parts of the US where the virus hit early, the profile has largely matched Europe’s, while in other parts, the urge to reopen businesses has trumped the desire to contain the virus and uncertainty looms. In the developing world, the crisis has just begun, but without the economic headroom and resources necessary to contain it. As the crisis unfolded, the effect on oil and gas demand has been predictable but difficult to gauge precisely and therefore difficult to manage.
Oil prices have crept up steadily as production has been curtailed through coordinated action (OPEC+) and because of economic reality (unconventional oil in North America). That trend has been subject to momentary spasms when bad news hit the market. It would be understandable if traders were nervous, and it seems that they are. Although nowhere near where it was at the peak of the crisis, option implied volatility is still at historically high levels. Gas markets, without the benefit of coordination on the supply side, continue to deal with the market implications of storage at or near capacity. Interfuel competition in power generation has always provided something of a floor, but those lows have been, and will continue to be, tested.
Zahl der Gewinnwarnungen steigt auf RekordniveauEY
Immer mehr deutsche börsennotierte Unternehmen müssen ihre eigenen Umsatz- oder Gewinnprognosen nach unten korrigieren. Im ersten Quartal stieg die Zahl der Prognosekorrekturen auf ein neues Rekordniveau: Insgesamt 77 Gewinn- oder Umsatzwarnungen wurden registriert.
Die Corona-Krise trifft auch die Versicherungsbranche mit voller Wucht. Die Versicherer rechnen mit weniger Neugeschäft. Jeder Fünfte mit Personalabbau und Prämienerhöhungen.
Liquidity for advanced manufacturing and automotive sectors in the face of Co...EY
With a global economy in crisis due to Covid-19 our liquidity and cash management deck for advanced manufacturing and
mobility companies looks at how these companies should best respond.
IBOR transition: Opportunities and challenges for the asset management industryEY
EY Wealth & Asset Management explores the practical implications and the way forward for the transition to the new risk-free rates. This presentation aims to help asset managers and asset owners explore IBOR transition strategies that are compliant and future-focused.
Fusionen und Übernahmen dürften nach der Krise zunehmenEY
Folgt auf die Corona-Krise ein M&A-Boom? Laut Capital Confidence Barometer von #EY hoffen 40 Prozent der deutschen Unternehmen auf sinkende Bewertungen von Übernahmekandidaten.
EY Price Point: global oil and gas market outlook, Q2, April 2020EY
The first quarter of this year has seen some extraordinary events. As if chronic oversupply, prices stuck below sustainable levels, the looming energy transition, and investor pressure to decarbonize weren’t enough, our industry now faces a dramatic, but hopefully temporary, downturn in demand as a result of the ongoing COVID-19 outbreak.
Our Global Chemical Industry Leader Frank Jenner explores the trends and drivers that will shape the chemical industry of tomorrow in our latest Chemical Market Outlook.
Die Geschäftslage im Mittelstand hat sich leicht verschlechtert, ist in den meisten Branchen aber weiter überwiegend gut - die Einstellungsbereitschaft sinkt.
1. The majority of pharmaceutical
contract manufacturers are privately
owned – but for how long?
EY CDMO Study
The large majority of companies in today’s fragmented contract
manufacturing landscape are either privately owned, often small
family-run or mid-market companies, or assets of private equity
funds. These private companies or their assets represented the
vast majority of targets for acquisitions in the CDMO space, with
a total of 226 (56% of all CDMO deals from 2012 to 2016).
86
80
108
5
115Private strategic
Asset of investment firm
Asset of public strategic
Asset of private strategic
Public strategic
Number of dealsTarget ownership
Private strategic
Asset of investment firm
Asset of public strategic
Asset of private strategic
Public strategic
8.2
3.6
6.6
6.3
25.7
EV (US$b)Target ownership