The dealmaking process behind corporate M&As can be highly complex, with a significant number of factors that need to be negotiated between the time a letter of intent is signed until the deal is officially closed.
There can also be a great deal at stake for the companies involved, not only financially but also from a reputational and market sentiment perspective.
Financing is a major factor in all mergers and acquisition transactions, especially in buy outs, and is an important driver of valuations.
Companies looking to buy businesses through third party financing, or to have a minority or majority sponsor onboard, currently have to deal with higher financing costs and lower valuations. This is because of the persistent volatile macro-economic climate, which includes the issue of inflation, the Russian/ Ukraine conflict, with all of them causing rising interest rates. These all directly impact the M&A industry.
The COVID-19 pandemic, global warming, the Russia-Ukraine conflict and global economic challenges. These are just some of the issues that are severely impacting the food and beverage industry across the globe. This, together with shifting consumer habits and lifestyle trends, is seeing this sector going through unprecedented change. While change within any sector is expected and par for the course, given the magnitude and pace at which the food and beverage industry is changing, what might this sector look like come 2050?
This year Translink Corporate Finance celebrates its golden anniversary since its founding by Dr Roland Schucht in 1972. At the time it was one of the first ‘small-to-mid-cap’ M&A firms to go cross-border. Dr Schucht’s global vision for the business has endured and today, Translink covers more than 35 countries spanning 6 continents. This month, 150 partners and colleagues from across the Translink Corporate Finance global group, gathered in Mallorca, Spain for a 50th anniversary celebration to remember.
In 2021, M&A transactions in the transport and logistics sector totalled US$220 billion, with 322 deals over US$50 million done. Incidents like the six-day-long Suez Canal blockage highlighted the pivotal role the sector plays, elevating logistics from being seen as a support function to being recognised as essential to world trade. Right now, M&A activity is booming, primarily driven by government and industry responses to the pandemic, as well as accelerated automation, digitalisation, and regionalisation trends.
Translink Corporate Finance in Norway (Synergos) and Sweden (Anecta), acted as the exclusive advisors to Minitech AS on the 100% sale to Eitrium.
Based in Hamar, Minitech AS develops and manufactures medical heating products for institutions and orthopedic clinics within the public as well as the private sector, primarily in Norway but also in other Nordic countries. The products consist of heat regulating clothing items and are certified in accordance with the Medical Device Directive. Minitech AS developed a market leading company and generated sales of NOK 27 million and EBITDA of NOK 7 million in 2021.
Translink Corporate Finance in Norway, Synergos, acted as the exclusive advisor to Nr1 Fitness AS on the sale to Credo Partners.
Credo Partners invests together with the founders of Toten Treningssenter, Trento, Trimhuset, Sprek365 and Nr1 Fitness in what will become a new top 3 player in the fitness centre industry in Norway. The group operates 64 full-scale and express centres in Sunnmøre, Hordaland and in Østlandet/Innlandet, with a focus on local roots and good customer experiences.
BlueThread Services (“BlueThread” or the “Company”), a market-leading roofing and exterior services group, announced that it has partnered with RoofCARE, LLC (“RoofCARE” or the “Company”), a premiere provider of roof repairs, renovation, installation and service for commercial and municipal properties in New Mexico.
Translink Corporate Finance advised PlanetHome Group, a leading real estate service provider in Germany and Austria in the brokerage and financing of real estate, on its investment in RENEWA GmbH, the leading consultant for holistic energy consulting and energy-related building renovation.
Southern HVAC Corporation announced the acquisition of Pro Plumbing Services, LLC (“Pro Plumbing” or the “Company”). The acquisition builds on Southern HVAC’s already established Plumbing & Air Service Company brand, servicing the greater Piedmont Triad area.
