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TRANSCRIPT
M&A 2013 in reviewWhat about 2014?
By Onno Sloterdijk
Largest global M&A deals of 2013
#3 #5#1 #4#2
Verizon WirelssŶ Verizon acquired
Vodafone’s 45% share in Verizon Wireless
Ŷ After completion, V d f
H.J. HeinzŶ Berkshire Hathaway and
3G Partners acquired H.J. Heinz
Ŷ Warren Buffet increased i fid
DellŶ Michael Dell and
Silverlake acquired DellŶ One of the ever largest
deals
NBC Universal MediaŶ Comcast acquired NBC
Universal MediaŶ General Electric is the
seller
Virgin MediaŶ Liberty global acquired
Virgin MediaŶ Creating the largest
advertising agency in the ldVodafone expects a strong
free cash flow, and therefore decided to increase the 2014 dividend per share by 8%
investor confidence world
Acquirer
Transaction value:EUR 15.0bn
EBITDA multiple:4.9x
Transaction value:EUR 12.4bn
EBITDA multiple:n/a
Transaction value:EUR 20.5bn
EBITDA Multiple:17.8x
Transaction value: EUR 98.7bn
EBITDA Multiple:9.4x
Transaction value:EUR 12.4bn
EBITDA multiple:n/a
2© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: Mergermarket, KPMG analysis.
Large European M&A deals in 2013
NokiaŶ After a close R&D
partnership, Microsoft acquired the Swedish mobile phone producer Nokia
Warner Chilcott PLCŶ Actavis acquired Warner
Chilcott, creating a leading global specialty pharmaceutical company with approximately EUR
Omnicom GroupŶ The US based Omnicom
Group, and the Paris based Publicis Groupeagreed for a merger of equals
Kabel Deutschland HoldingŶ Vodafone agreed to
acquire KabelDeutschland
Ŷ Kabel Deutschland i d i i
Elan CorporationŶ Perrigo Company, the
listed US based healthcare and pharmaceutical company, has agreed to acquireNokia with approximately EUR
8bn revenue per yearequals
Ŷ The combination creates a leading global specialty pharmaceutical company with approximately EUR 17bn revenue per year
continued is operations as a full owned subsidiary of Vodafone
has agreed to acquire Elan Corporation Plc, the listed Ireland based biopharmaceutical company that manufactures drugs
Acquirer
Transaction value:EUR 7.2bn
EBITDA multiple:n/a
Transaction value:EUR 4.9bn
EBITDA multiple:n/a
Transaction value:EUR 5.9bn
EBITDA Multiple:12x
Transaction value: EUR 14.6bn
EBITDA Multiple:9.3x
Transaction value: EUR 6.6bn
EBITDA Multiple:5.9x
3© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: Mergermarket, KPMG analysis.
Large Dutch M&A deals in 2013
LNG Assets
DE Master BlendersŶ John A Benckiser acquired
D.E. Master BlendersŶ The offer price represents
a 30% premium on top of h ' l i i
ILFCŶ Aercap became the
largest airplane lease company after acquiring their competitor ILFC from AIG
RepsolŶ Royal Dutch Shell
acquired the LNG assets of Repsol AS
Ŷ The transaction l Sh ll’
Brand LoyaltyŶ Alliance Data Systems
acquired a 60% stake in Brand Loyalty, which wasmerged with LoyaltyOneafterwards
VionŶ Darling International
acquired the ingredients division of Vion
Ŷ The acquisition enabled D li di if i
LNG Assets
the target's closing price on the last trading day prior to the initial announcement of interest
AIGŶ The consideration is
comprised of EUR 2.2bn in cash and 97m AerCap shares, which represents 46% of the combined company
complements Shell’s existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia
afterwardsŶ ADS also has an option to
acquire the remaining 40% stake
Darling to diversify its product line, revenues and EBITDA geographically
Acquirer
Transaction value:EUR 5.1bn
EBITDA multiple:4.9x
Transaction value:EUR 360.0m
EBITDA multiple:n/a
Transaction value:EUR 4.0bn
EBITDA Multiple:17.8x
Transaction value: EUR 6.6bn
EBITDA Multiple:16x
Transaction value:EUR 1.6bn
EBITDA multiple:10.9x
4© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: Mergermarket, KPMG analysis.
Mid-market Dutch M&A deals in 2013
Ampelmann
Ŷ IK Investment Partners competed with Warburg Pincus, HGCapital, EQT and Parcom in the
USG Energy
Ŷ Rabo Capital acquiredUSG Energy from USG People
Ŷ The acquisition also
HG International
Ŷ Gilde Buy Out Partners and the company’smanagement acquiredHG International
Basic Fit
Ŷ 3i acquired Basic Fit out of Health City, owned by Waterland
Ŷ Enabling René Moos
ID&T
Ŷ SFX Entertainment Inc, the US based company engaged in broadcasting and managing live shows,
acquisition processŶ The acquisition also
includes USG Energy's subsidiary ADCE Inter-Services Limited
Ŷ The acquisition will enable HG International to increase its market position in cleaning products
Ŷ Enabling René Moos (management) to buy-outWaterland
acquired a 75% stake in ID&T
Acquirer
Transaction value:n/a
Transaction value:EUR 80m
Transaction value:EUR 115m
Transaction value:EUR 275m
Transaction value:EUR 100m
5© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: Mergermarket, KPMG analysis.
Selection of our recent Dutch M&A transactions
KPMG Corporate Finance
ss Rotterdam
acts as financial advisor to Stichting Woonbron in the
sale of the steamship
KPMG Corporate Finance
OVO
acted as financial advisor to OVO in its sale to Achmea
KPMG Corporate Finance
Steven ParcBeheer
acted as financial advisor to the shareholders of Steven Parc Beheer on the sale of
KPMG Corporate Finance
acted as exclusive financial advisor and transaction
manager to De Goudse on
De GoudseKPMG Corporate Finance
acted as financial advisor and transaction manager to
Schoeller Allibert on the
Schoeller AllibertKPMG Corporate Finance
acted as exclusive financial advisor and transaction manager to Smilde Bakery on the sale of
Smilde BakeryKPMG Corporate Finance
acted as exclusive financial advisor to De Combi Groepon the sale of the company
De Combi GroepKPMG Corporate Finance
acted as the exclusive financial advisor to the
shareholders of Wassenburg
WassenburgKPMG Corporate Finance
acted as deal manager and financial advisor to the shareholders of Virtual
Virtual Affairs
Getronics International
June 2013
pRotterdam, a former
transatlantic and cruise ship, currently operating as a
hotel and conference centre
Mitsubishi
January 2013June 2013
the company to STAR Group / Parcom Capital
June 2013
gthe sale of its Nordic travel and expatriate insurance activities to Gjensidige
ForsikringJune 2013
acquisition of iGPSCompany
July 2013
yits chocolate chip cookie
activities, Non Stop! to Snoek Bakkerijen
July 2013
p yto De Hooge Raedt Groep
November 2013
gon the sale of Wassenburg
& Co. B.V. to Hoya Corporation from Japan
October 2013
Affairs on the sale of a minority stake to Holland
Venture
Dutch Mid Market Completed advisor ranking1
2013 No. of deals
EMA Mid Market Completed advisor ranking1
2013 No. of dealsKPMG Corporate Finance
May 2012
acted as financial advisor to KPN with regard to the sale of Getronics International
(Europe and APAC) operations to Aurelius AG
Best Dutch Corporate Finance
Advisor
KPMG Corporate Finance
January 2013
acted as sole financial advisor to Mitsubishi Corporation on the acquisition of a 50% stake in Eneco’s Prinses Amalia wind park and Luchterduinen wind
project
1 Rabobank NV 282 KPMG 233 PricewaterhouseCoopers 204 M&A International 195 BDO 176 ING 167 BlueMind Corporate Finance 14
1 KPMG 2622 PwC 2543 BDO 1774 Ernst & Young 1624 Rothschild 1626 IMAP 1277 Grant Thornton 122
KPMG Corporate Finance
May 2012
acted as financial advisor and transaction manager to AUV Holding on the sale of Eurovet Animal Health to Dechra Pharmaceuticals
Eurovet Animal Health
KPMG Corporate Finance
Neckermann.com
January 2013
acted as deal manager and financial advisor to
Neckermann.com Benelux on the sale to Axivate
Capital
Source: Thomson Reuters SDC, January 2014.Note 1: <US$500m
8 IMAP 10
8* ABN AMRO Bank 1010 Clairfield International 9
8 Deloitte 91
8 Lazard 9110 M&A International 78
KPMG Corporate Finance
acted as financial advisor and transaction manager to AUV Holding on the sale of AUV Veterinary Services to
Henry Schein
AUV Veterinary Services
KPMG Corporate FinanceDSM
acted as exclusive financial advisor to DSM on the acquisition of Ocean
Nutrition Canada
KPMG Corporate FinanceOGD
acted as financial advisor to GIMV with regard to the sale of OGD to management and van Lanschot participations
KPMG Corporate FinanceARS T&TT
acted as deal manager and financial advisor to the
shareholder of ARS Traffic & Transport Technology on the sale of a minority stake
to Gimv
KPMG Corporate Finance
Mitsubishi Motors
acted as financial advisor to Mitsubishi Motors on the
sale of NedCar
KPMG Corporate FinanceTelecom masts
acted as financial advisor to KPN with regard to the sale of telecommunication masts
to PE investor Protelindo
KPMG Corporate FinanceAtomblock
acted as deal manager and financial advisor to
Atomblock on the sale to ALSO-Actebis
KPMG Corporate Finance
RAI Langfords
acted as financial advisor to RAI with regard to the split sale of RAI Langfords to ManagementMedia and
management
KPMG Corporate Finance
ROVA
acted as deal manager and financial advisor to ROVA
on the sale of ROVA Bedrijven to Remondis
6© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
May 2012 July 2012June 2012 July 2012 October 2012 November 2012 December 2012 January 2013 January 2013
Global, European and Dutch M&A activity
4,000
5,000
als 14%3%
3%2%2%
Global M&A volume by type of buyer Global deal activity per sector (past 12 months)
Business servicesTransportTelecom
AutomotiveOther
Leisure
2,866
3,053 3,113
3,233 3,073
3,159
2,948 2,975
2,422 1,967
1,770 1,970
2,010 2,350
2,291
2,478 2,481
2,703 2,613
2,894 2,667
2,656 2,751
2,810 2,728
3,232
2,797 2,982
3,029 3,210
1,000
2,000
3,000
Num
ber o
f dea
14%
7%
4%
4%
4%3%
Industrials
Media
Consumer: Food&Bev
Construction
676 681 713 754 649 694 585 655 576 366 293 307 361 375 432 491 534 571 537 614 550 524 534 551 485 527 472 495 553 563
-Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2006 2007 2008 2009 2010 2011 2012 2013
Financial buyers Strategic buyers
9%
9%9%
8%
8% Chemicals&Pharma
Energy&Utilities
Technology
Consumer: Non-food
Financial services
EU 27 M&A volume by type of buyer Dutch M&A volume by type of buyer
1,121 1,093
1,500
2,000
r of d
eals
EU-27 M&A volume by type of buyer Dutch M&A volume by type of buyer
82
81
90
120
150
of d
eals
319 332 341 354 295 325 285 332 255 180 131 138 161 166 203 230 243 231 224 287 262 238 221 221 185 201 180 205 226 212
936 1,139
1,135 1,069 1,075
1,085 840
719
641 658
596 743 764
819 820 891
886 992
923 899
947 935
901 1,026
966 1,032
1,008 1,017
-
500
1,000
Num
ber
30 16
28 29 31 31 18 24
15 15 11 18 13 10 17 12 28
17 17 22 22 17 9 16 12 16 15 7 19 19
55
93 60 80
70
71
53 43
49 60 47 49
60 59
54 55
74
79 59
71
71
70 81
65 64
67
74 69
-
30
60
Num
ber o
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Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2006 2007 2008 2009 2010 2011 2012 2013
Financial buyers Strategic buyersSource: MergerMarket, KPMG Analysis.
Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2006 2007 2008 2009 2010 2011 2012 2013
Financial buyers Strategic buyers
Global and EMA M&A activity according to Thomson Reuters
Global completed deals EMA completed deals
5,00050 2,000 20
Dec
06
–D
ec 1
3
1,000
2,000
3,000
4,000
10
20
30
40 Value (US$bn)
Num
ber d
eals
('00
0)
500
1,000
1,500
5
10
15
Value (US$bn)
Num
ber d
eals
('00
0)
D
--
Dec
-06
Apr-
07Au
g-07
Dec
-07
A pr-
08Au
g-08
Dec
-08
Apr-
09Au
g-09
Dec
-09
A pr-
10Au
g-10
Dec
-10
Apr-
11Au
g-11
Dec
-11
A pr-
12Au
g-12
Dec
-12
A pr-
13Au
g-13
Dec
-13
Volume Value (US$m)
--
Dec
-06
Apr-
07Au
g-07
Dec
-07
A pr-
08Au
g-08
Dec
-08
A pr-
09Au
g-09
Dec
-09
A pr-
10Au
g-10
Dec
-10
A pr-
11Au
g-11
Dec
-11
A pr-
12Au
g-12
Dec
-12
A pr-
13Au
g-13
Dec
-13
Volume Value (US$m)
–D
ec 1
3
2 100
2,200
2,300
28
29
30
31
Value ('000
)
700
800
13
14
Va'000
)
Jan
13 –
1,900
2,000
2,100
25
26
27
28
Jan-
13
Feb-
13
Mar
-13
Apr-
13
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec
-13
(US$bn)
Num
ber d
eals
(
500
600
11
12
Jan-
13
Feb-
13
Mar
-13
Apr-
13
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec
-13
alue (US$bn)
Num
ber d
eals
(
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Source: Thomson Reuters SDC
A
Volume Value (US$m)
A
Volume Value (US$m)
Americas and AsPac M&A activity according to Thomson Reuters
Americas completed deals AsPac completed deals
3,000 20
700
800 12
Dec
06
–D
ec 1
3
500
1,000
1,500
2,000
2,500
5
10
15
Value (US$bn)
Num
ber d
eals
('00
0)
100
200
300
400
500
600
700
2
4
6
8
10 Value (US$bn)
Num
ber d
eals
('00
0)
D
--
Dec
-06
Apr-
07Au
g-07
Dec
-07
Apr-
08Au
g-08
Dec
-08
A pr-
09Au
g-09
Dec
-09
A pr-
10Au
g-10
Dec
-10
A pr-
11Au
g-11
Dec
-11
A pr-
12Au
g-12
Dec
-12
A pr-
13Au
g-13
Dec
-13
Volume Value (US$m)
-
100
-
Dec
-06
Apr-
07Au
g-07
Dec
-07
A pr-
08Au
g-08
Dec
-08
A pr-
09Au
g-09
Dec
-09
A pr-
10Au
g-10
Dec
-10
A pr-
11Au
g-11
Dec
-11
A pr-
12Au
g-12
Dec
-12
Apr-
13Au
g-13
Dec
-13
Volume Value (US$m)
–D
ec 1
3
1,200
1,300
11 0
11.5
12.0
Value (000)
500
550
7.5
8.0
8.5
Value (U'000
)
Jan
13 –
1,000
1,100
10.0
10.5
11.0
Jan-
13
Feb-
13
Mar
-13
Apr-
13
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec
-13
US$bn)
Num
ber d
eals
('
400
450
6.5
7.0
Jan-
13
Feb-
13
Mar
-13
Apr-
13
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec
-13
US$bn)
Num
ber d
eals
('
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M A S N D
Volume Value (US$m)
M A S N D
Volume Value (US$m)
Source: Thomson Reuters SDC
Leveraged loans
300 350 400 450 500
(bps
)
Loan Pricing in Western EuropeLeveraged Loans in Western Europe
80
100
120
140
80
100
120
140
160
Num
b
D b
ililio
ns)
-50
100 150 200 250
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2006 2007 2008 2009 2010 2011 2012 2013
Spr
ead
-
20
40
60
-
20
40
60
80
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2006 2007 2008 2009 2010 2011 2012 2013
er of deals
Dea
l vol
ume
(US
D
5.0x
6.0x
7.0x
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013Market Avg. Lev. I-Grade
Leveraged Multiples in Western EuropeLeveraged Debt Maturity Profile in Europe
2006 2007 2008 2009 2010 2011 2012 2013Vol. (USD billions.) No. of Deals
Source: Loan Connector Source: Loan Connector
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Mul
tiple
0%
10%
20%
30%
40%
50%
60%
2007 2008 2009 2010 2011 2012 HY13 Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2006 2007 2008 2009 2010 2011 2012 2013
Sr. Debt / EBITDA Tot. Debt / EBITDA
2007 2008 2009 2010 2011 2012 HY13<5yrs 5 6 7 8 >8yrs
Key comments
Ŷ The European leveraged loan market proved resilient in 2012 despite the challenging macroeconomic backdrop. The first half allocations totaled €34.9bn through 34 deals while the second half allocations totaled € 35bn with 57 deals
Key comments
Ŷ Overall pricing is at higher levels than before the credit crisis. In addition, additional cost charges (e.g. liquidity charge, handling fees) result from challenging market conditions with uncertain outlook and new bank regulations
Source: Loan ConnectorSource: Debtwire
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Ŷ There was a clear shift towards shorter-dated loans in 2012. Nearly 55% of all the new loans by value allocated during the year came at a maturity of five years or shorter, this was up from 15% and 20% in 2011 and 2010 respectively
Ŷ In the period Q1 2010 to Q2 2011, average leverage levels of total debt and senior debt were converging, indicating minimal appetite for subordinated loans. However, sub debt appetite has been increasing in 1H 2012
USPP
225250
99
149138 132 127
120
160
200
300
N
1.62.2
3.2
1.4
30
35
40
45
s)
Global Private placements Global Private Placements - Median
180
210225
20199
40
80
100
200
Num
ber of p
lacement
Med
ian
am
oun
t (U
SD
mill
ions
)
21.3
36.733.0
36.933.8
1.9
5
10
15
20
25
30
Vo
lum
e (U
SD
bill
ion
002009 2010 2011 2012 2013
ts
Median # of deals
-
5
2009 2010 2011 2012 2013
Rest of world The NetherlandsSource: Private Placement Letter Source: Private Placement Letter
Geographic Distribution - 2013 Sector Distribution - 2013Other
United States44%
Canada10%
Germany5%
Netherlands4%
Ot e11%
Energy & Utilities39%
Other26%
United Kingdom
Australia11%
10%
Media & E t t i tAutomotive &
Chemicals5%
Real Estate5%
Business Services5%
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United Kingdom15%
Entertainment10%
Transportation10%
Source: Private Placement Letter Source: Private Placement Letter
USPP
200 200 198 199 193 200
250 138
120
140
160
Private Placement Maturity Profile - 2013 Private Placement - Average price with different maturities - 2013
134
50
100
150
Pri
cin
g in
Bsp
29
56 52
24 2240
60
80
100
# o
f dea
ls
-5 7 10 12 15 30
Maturity
9
0
20
> 5 5 - 7 7 -10 10 - 12 12 - 15 15 - 30 < 30Maturity (in years)Source: Private Placement Letter Source: Private Placement Letter
Private Placement – Price range with different maturities - 2013
350
401 401
335
280
190200 200 198 199 193200 250 300 350 400 450
g in
Bsp
190 193
134
90 105 89 103 125
85
-50
100 150
5 7 10 12 15 30
Pri
cin
g
Maturity
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Source: Private Placement Letter
Max of Price Average of Price Min of Price
German Schuldschein
25
30
)
Corporate Schuldschein Average Schuldschein Volume per Transaction
16
170
175
ons)
10
15
20
Vo
lum
e.(U
SD
bill
ions
)
155
160
165
Vo
lum
e.(U
SD
mill
io
-
5
10
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
V
140
145
150
2009 2010 2011 2012 2013
Key comments
Ŷ Over the last 10 years, the Corporate Schuldschein market in Germany has attracted strong demand from investors. With a total issuance volume of approximately USD11.0n in 2013, the positive long-term trend remains intact
Ŷ It is estimated that the total volume of outstanding Corporate Schuldschein volume will be in the range of USD79 7 92 9bn currently and the corporate Schuldschein
Source: German Market Outlook Report Source: German Market Outlook Report
Ŷ It is estimated that the total volume of outstanding Corporate Schuldschein volume will be in the range of USD79.7–92.9bn currently, and the corporate Schuldscheinmarket redemptions to be approximately USD6.6–6.0bn in 2013. A large number of these redemptions have been replaced by new issues
Ŷ Approximately 25% of the Corporate Schuldschein issuers were foreign companies, foreign issuers from European countries have frequently tapped the Corporate Schuldschein market and have successfully executed transactions
Ŷ Transaction maturities extended from around 3 to 5 years in 2012 toward 5 to 10 years in 2013, depending on the industry – a trend that we expect to continue in 2014
Ŷ Many corporations have taken advantage of the Corporate Schuldschein market as first time issuers – sometimes using Schuldschein as a first step toward capital
13© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
y p g p g p pmarkets, and thus showing capital market readiness
Source: German Market Outlook Report
Corporate Lending Netherlands – Volume & Pricing
300
350
400
Volume outstanding loans by original maturity
50
100
150
200
250
300
EU
R b
illio
n
Source: De Nederlandsche Bank, KPMG analysis
-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2012 2013
Original maturity <= 1 yr Original maturity > 1 yr and <= 5 yr Original maturity > 5 yr
Spreadfor outstanding loans by original maturityInterest rates for outstanding loans by original maturity
150
200
250
300
sis
po
ints
Spread for outstanding loans by original maturity
2 0%
2.5%
3.0%
3.5%
4.0%
4.5%
Interest rates for outstanding loans by original maturity
-
50
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2012 2013
Bas
0.0%
0.5%
1.0%
1.5%
2.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2012 2013
14© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: De Nederlandsche Bank, KPMG analysis Source: De Nederlandsche Bank, KPMG analysis
original maturity <= 1 yr original maturity > 1 yr and <= 5 yr original maturity > 5 yrOriginal maturity <= 1 yr Original maturity > 1 yr and <= 5 yr Original maturity > 5 yr
Corporate Lending Netherlands – Volume & Pricing for new business
8.0
9.0
10.0
Volume new business by loan size
1.0
2.0
3.0
4.0
5.0
6.0
7.0
EU
R b
illio
n
Source: De Nederlandsche Bank, KPMG analysis
I t t t f b i b l i Spreadfor ne b siness b loan si e
-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2012 2013
New business <= EUR 1 million New business > EUR 1 million
2 0%
2.5%
3.0%
3.5%
4.0%
4.5%
Interest rates for new business by loan size
200
250
300
350
is p
oin
ts
Spread for new business by loan size
0.0%
0.5%
1.0%
1.5%
2.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2012 2013
-
50
100
150
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2012 2013
Bas
15© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: De Nederlandsche Bank, KPMG analysis Source: De Nederlandsche Bank, KPMG analysis
New business <= EUR 1 million New business > EUR 1 million New business <= EUR 1 million New business > EUR 1 million
Prices paid in the mid-market from 2010 to 2013
250212
250 250 250
Strategic buyers
ns ns ns ns
2010 201320122011
61 47
112
173
50
100
150
200
7048
125
212
50
100
150
200
7962
136
191
50
100
150
200
49 46
98
152
50
100
150
200
Num
bero
f tra
nsac
tion
Num
bero
f tra
nsac
tion
Num
bero
f tra
nsac
tion
Num
bero
f tra
nsac
tion
0<6 6-8 8-10 >10
0<6 6-8 8-10 >10
0<6 6-8 8-10 >10
0
50
<6 6-8 8-10 >10
PE buyers
N
EBITDA Multiples
N N N
EBITDA Multiples EBITDA Multiples EBITDA Multiples
y
ansa
ctio
ns
ansa
ctio
ns
ansa
ctio
ns
ansa
ctio
ns
2010 2011 2012 2013
28
48
40
50
60
33
46
40
50
60
3440
50
60
28
41
30
40
50
Num
bero
f tra
Num
bero
f tra
Num
bero
f tra
Num
bero
f tra
EBITDA Multiples EBITDA Multiples EBITDA Multiples EBITDA Multiples
8
28
16
0
10
20
30
<6 6-8 8-10 >10
17 15
0
10
20
30
<6 6-8 8-10 >10
8 11
22
0
10
20
30
<6 6-8 8-10 >10
7
20
0
10
20
<6 6-8 8-10 >10
16© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
Source: Mergermarket, KPMG analysis., figures based on announced deal characteristics, deals with deal value of 100m-500m are included
EBITDA Multiples EBITDA Multiples EBITDA Multiples EBITDA Multiples
KPMG M&A predictor
Cashrich corporates
According to Tom Franks, Global Head of Corporate Finance at KPMG, “the growing appetite for deals and an
Cashrich corporates
According to Tom Franks, Global Head of Corporate Finance at KPMG, “the growing appetite for deals and an
Red hot IPO market
“Steadily increasing corporate confidence is still not being reflected in global transaction levels, and deal markets are continuing to struggle. However, this is against a background
Red hot IPO market
“Steadily increasing corporate confidence is still not being reflected in global transaction levels, and deal markets are continuing to struggle. However, this is against a background the growing appetite for deals and an
increase in pressure to transact are two sides of the same coin. Investors have been patient over the last 3 or 4 years. But as deal capacity continues to rise and global markets maintain some stability, the pressure on
the growing appetite for deals and an increase in pressure to transact are two sides of the same coin. Investors have been patient over the last 3 or 4 years. But as deal capacity continues to rise and global markets maintain some stability, the pressure on
of a red hot IPO market in the UK and the US, and it will be interesting to see how the M&A situation changes throughout 2014,” said Tom Franks. of a red hot IPO market in the UK and the US, and it will be interesting to see how the M&A situation changes throughout 2014,” said Tom Franks.
cashrich corporates to start deal-making again is going to intensify.”cashrich corporates to start deal-making again is going to intensify.”
Greater confidence“It is encouraging to see such strong expectations for North America and Europe over the next 12 months, reflecting the return to form of these crucial M&A markets Although the Fed’s December announcementmarkets. Although the Fed’s December announcement on tapering quantitative easing might cause an initial wobble, greater confidence in North America and Europe should hopefully kick-start a recovery in transaction levels globally during 2014,” commented Tom Franks.
12% CAPACITY (net debt / EBITDA)
By
16% APPETITE
(Forward P/E ratios)
Since
17© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
December 2014 December 2012
Questions
18© 2014 KPMG Advisory N.V., a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Netherlands. KPMG and the KPMG logo are registered trademarks of KPMG International.
For further questions: Onno SloterdijkKPMG head of Private Equitypartner KPMG Corporate Finance
sloterdijk onno@kpmg [email protected]+31 20 656 7985