IMAP was again able to increase the number of successfully completed transactions in 2019 – from 208 to 234 deals. With 21 successfully completed transactions in Germany, IMAP ranks among the top 10 M&A advisors for deals up to USD 500m in the latest Refinitv ranking again.
The average transaction value was $ 66.9 million globally, on a similar level to the value in Germany, where IMAP successfully completed several company sales and succession arrangements in the two to three-digit million range for owner-managed mid-sized companies and financial investors. IMAP's most active sectors globally were Technology (42), Industrials (35) and Consumer & Retail (28). Most active sectors in German deals were Industrials followed by Automotive, Consumer & Retail and IT/Software.
Globally, IMAP was acting as sell-side advisor on 76% and buy-side advisor on 24% of the completed transactions. In Germany, even 19 of the 21 completed transactions were sell-side engagements, mostly on behalf of the shareholders of mid-sized companies, who particularly appreciate our advisory services. Predominant buyers in Germany were financial investors, but we were also able to successfully complete several cross-border transactions with strategic buyers in close cooperation with our local IMAP partners, e.g. in the USA and Ireland.
With regard to the outlook for 2020, our partner colleague Marco Strogusch shares his view on what to expect in the next 12 months: "We expect the German M&A market to develop robustly, albeit at a slightly lower level than in the previous year. The market will be characterized by an increase in carve-outs, spin-offs and distressed transactions. Valuation multiples remain at a very high level, however, it can be assumed that valuations will decline slightly, even noticeably in some sectors, over the next 12 - 18 months. This development is, among other things, driven by the continuous high level of economic uncertainty, the sector-specific downturns that began last year and an increasingly conservative financing environment. Nevertheless, the window for attractive exits should remain open for the year ahead."
The Italian Ariston Thermo Group (Ariston) has acquired the majority of shares in Kesselheld GmbH (Kesselheld), one of the leading digital start-ups in heating installations in Germany.
Read the Chairman's Letter introduction to the Coronavirus special edition of IMAP's publication, Creating Value.