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L’évolution des comportements des consommateurs, l’innovation dans les différentes catégories de produits et le repositionnement stratégique ouvrent de nouvelles perspectives de croissance au marché européen des boissons.

Ces thèmes étaient au cœur de la conférence organisée par Investec et OC&C à Haarlem, aux Pays-Bas, où 40 dirigeants de grandes entreprises de boissons alcoolisées et non alcoolisées s’étaient réunis aux côtés d’investisseurs en capital-investissement détenant des participations dans ce secteur.

Organisé à la brasserie Jopenkerk, l’événement a permis de mettre en lumière des perspectives macroéconomiques, stratégiques et opérationnelles pour examiner où se crée de la valeur sur un marché de plus en plus concurrentiel.

Une demande résiliente, des comportements en mutation

Alors que le contexte économique général reste mitigé, le secteur des boissons continue de faire preuve de résilience en tant que catégorie de consommation. Les habitudes d’achat régulières, la fréquence des occasions de consommation et la forte fidélité à la marque ont toujours soutenu la demande lors des périodes difficiles.

Philip Shaw a expliqué comment l’inflation, les coûts énergétiques et les incertitudes géopolitiques continuent d’influencer les budgets des ménages et la planification des entreprises. Malgré cela, la demande en boissons est restée relativement stable. Pour les acteurs de l’ensemble de la chaîne de valeur, la résilience à elle seule ne suffit plus. La flexibilité en matière de tarification, de gestion de portefeuille et de mise en œuvre des stratégies de commercialisation revêt une importance croissante.

La croissance devient de plus en plus sélective

Si la croissance globale des marchés européens a été modeste ces dernières années, les performances sous la surface affichent des écarts marqués.

Dan Zubaida a souligné que la dynamique la plus forte se concentre désormais sur des catégories en phase avec l’évolution des préférences des consommateurs :

Dans le même temps, les segments plus traditionnels sont confrontés à une croissance plus lente et à une concurrence plus intense. Il en résulte un marché plus polarisé, où un positionnement ciblé importe davantage qu’une large exposition à la catégorie.

Pour les équipes de direction comme pour les investisseurs, l’opportunité réside de plus en plus dans l’identification de poches spécifiques de croissance structurelle plutôt que dans l’espoir d’une reprise uniforme du marché.

La force de la marque reste le moteur de la surperformance

À mesure que l’innovation s’accélère et que l’espace en rayon devient de plus en plus disputé, la clarté de la marque s’impose comme un atout de plus en plus déterminant.

Les exemples évoqués lors de la conférence ont montré que les marques les plus performantes associent souvent une proposition claire adressée au consommateur à une exécution rigoureuse :

Dans les catégories où les barrières à l’entrée sont moins élevées et où les marques challengers peuvent se développer rapidement, le succès durable ne repose pas simplement sur le lancement de nouveaux produits. Développer des marques susceptibles de générer des achats répétés présentent un intérêt pour les détaillants.

La modération crée de nouvelles occasions de consommation

L’un des débats les plus animés a porté sur l’évolution des habitudes de consommation d’alcool, en particulier chez les jeunes consommateurs.

Les tendances à la modération redéfinissent les schémas, de nombreux consommateurs recherchant l’équilibre plutôt que l’abstinence. Cela favorise la croissance des bières sans alcool, des boissons non alcoolisées destinées aux adultes, ainsi que des boissons et des produits conçus pour des occasions sociales sans alcool.

Plutôt que de représenter une simple tendance de substitution, les catégories sans alcool et à faible teneur en alcool pourraient également élargir l’ensemble des occasions de consommation en créant de nouveaux cas d’utilisation dans des contextes sociaux en semaine, axés sur le bien-être et impliquant des groupes mixtes.

Que ce soit pour les acteurs du secteur des boissons alcoolisées ou des boissons non alcoolisées, la frontière de plus en plus floue entre les catégories ouvre de nouvelles perspectives stratégiques.

Tendances en matière de santé et effet du GLP-1

L’impact des médicaments à base de GLP-1, notamment ceux utilisés pour la perte de poids, sur le marché des boissons a également fait l’objet de vifs débats.

Les participants ont noté qu’à court terme, les entreprises du secteur des boissons répondent à la demande en s’orientant vers des catégories « complémentaires » adjacentes, telles que:

qui sont en phase avec l’évolution des priorités et des préférences des consommateurs en matière de santé.

Les participants ont débattu de la question de savoir si l’innovation de la forme d’administration du GLP-1 sous forme de boissons pourrait, à terme, créer de nouvelles opportunités de croissance connexes. Bien qu’il s’agisse encore d’un thème émergent et soumis à des évolutions réglementaires et commerciales, la discussion a mis en évidence la manière dont les tendances externes en matière de santé peuvent influencer la stratégie de portefeuille à long terme et l’innovation produit dans l’ensemble du secteur.

La taille, les fusions-acquisitions et l’expansion géographique restent des leviers clés

Un sondage réalisé auprès du public pendant la conférence a révélé les priorités qui déterminent actuellement les agendas des conseils d’administration. L’innovation produit a été identifiée comme le levier de croissance le plus crucial par 39 % des participants, suivie par l’expansion géographique (32 %) et les fusions-acquisitions (25 %).

Ces réponses reflètent un marché où de nombreuses entreprises cherchent à équilibrer leurs initiatives de croissance organique avec des opportunités de croissance inorganique ciblées. Les acquisitions peuvent accélérer l’entrée sur des niches à croissance rapide, tandis que l’expansion internationale offre l’accès à de nouveaux bassins de consommateurs au-delà des marchés nationaux.

Le marché européen des boissons restant fragmenté en de nombreux sous-segments, la consolidation devrait rester un thème important.

La mise en œuvre continue de faire la différence entre les leaders et les autres

S’appuyant sur l’expérience d’A.G. Barr, Euan Sutherland a expliqué en quoi la croissance dépend en fin de compte d’une mise en œuvre cohérente des priorités commerciales, opérationnelles et d’innovation.

Cela implique d’investir dans les marques phares, de se développer dans des catégories connexes, d’améliorer la pénétration des canaux de distribution et de maintenir la capacité de la chaîne d’approvisionnement nécessaire pour soutenir la croissance. Sur un marché où les préférences des consommateurs peuvent évoluer rapidement, la rapidité et la capacité d’adaptation sont des atouts de plus en plus précieux. La stratégie définit la direction à suivre, mais c’est l’exécution qui crée de la valeur.

Perspectives

Le marché européen des boissons reste attractif, mais la croissance devient plus sélective. Les entreprises capables d’adapter leur portefeuille aux besoins changeants des consommateurs, de développer des marques distinctives et d’investir leur capital avec rigueur devraient afficher des performances supérieures à la moyenne.

Pour les investisseurs et les entreprises, la prochaine vague de création de valeur pourrait provenir moins de la seule croissance du marché que du soutien apporté aux catégories, aux compétences et aux marques les mieux placées pour répondre à l’évolution de la demande.

Galerie photos de l’événement

Michel Degryck, Managing Partner, figure parmi les banquiers d’affaires de référence en France selon MergerLinks (Datasite).

Cette distinction vient saluer son leadership reconnu et une exigence constante au service de ses clients.

Chaque transaction réussie repose avant tout sur une compréhension fine des enjeux, un discernement éclairé et des relations de confiance construites dans la durée.

Retrouvez les classements : Top Investment Bankers in France FY 2025

Nous sommes heureux d’annoncer une nouvelle expansion de nos services de conseil en M&A à l’international avec l’intégration de Capitalmind Switzerland sous la marque Investec.

L’équipe suisse, dirigée par Markus Decker et Thomas Ellenberger, est fière de rejoindre Investec, renforçant ainsi notre engagement commun à fournir des conseils et des solutions sur mesure en matière de fusions-acquisitions.

Il s’agit d’une étape importante pour notre équipe et nos clients, qui renforce notre présence et nos compétences à travers l’Europe.

Cette acquisition souligne notre engagement à développer nos activités de conseil, qui comptent désormais 300 professionnels des fusions-acquisitions répartis dans 17 bureaux à travers le monde, et complète l’offre intégrée d’Investec en Suisse, qui comprend la banque privée, la gestion de fortune et le direct lending.

« En réunissant nos professionnels des M&A à travers l’Europe, nous sommes en mesure d’apporter des idées nouvelles et des solutions sur mesure à nos clients en Suisse comme à l’international. »

– Markus Decker, associé gérant du bureau suisse

« Cette acquisition renforce notre présence en Suisse et améliore la collaboration mondiale, en connectant nos clients à des opportunités d’investissement internationales et locales. »

– Jonathan Arrowsmith, responsable des services bancaires d’investissement, Investec

Tous les membres de notre équipe suisse :

Markus Decker, Thomas Ellenberger, Yanik Costa, Dr. Miró Feller, Tim Graber, Kai Kiesinger, Lorenzo Mattei, Luca Stalder and Gabi Korolnyk

En savoir plus:

Suisse | Investec Advisory

Retrouvez l’entretien de Michel Degryck, Managing Partner, dans le numéro de NextStep n°22 de juin 2025 consacré aux cessions d’entreprises détenues par des fonds d’investissement.

Les cessions des entreprises détenues par les fonds se font toujours au compte-goutte malgré la pression des investisseurs pour le retour de liquidité et l’allongement de la durée de détention firtant avec les sept années en moyenne. (…)

Extrait :

“”

La situation est très contrastée selon la taille des entreprises. Sur le large cap, les transactions sont gelées car les cibles sont plus exposées à l’international et aux incertitudes de l’environnement macro-économique, d’une part et à la raréfaction des acquéreurs potentiels à des valorisations conformes aux attentes des cédants, d’autres part.

– Michel Degryck, Managing Partner, Investec
Retrouver l’article complet ici

Investec est fier d’annoncer que notre équipe France a reçu le Trophée d’Argent dans la catégorie Meilleure Banque d’Affaires – LBO Small to Mid Cap, lors du dernier Sommet des Leaders de la Finance à Paris.

Organisé par Décideurs Corporate Finance, cet événement met à l’honneur les acteurs les plus engagés et innovants du secteur, qui accompagnent avec succès des opérations stratégiques de grande envergure.

Nous remercions chaleureusement nos équipes pour leur engagement et leur professionnalisme, ainsi que nos clients pour leur confiance renouvelée.

Dans un marché des fusions-acquisitions de plus en plus exigeant, la question de la « préparation à la cession » (exit readiness) prend une importance croissante : stratégie, indicateurs clés, equity story, vendor due diligence – comment l’intégration précoce de la planification de la cession dans le développement stratégique de l’entreprise devient un facteur clé de succès.

Que peuvent réellement apprendre les dirigeants et propriétaires d’entreprise des rois du deal – les investisseurs en capital-investissement – en matière de préparation à la vente, afin de rendre les résultats de cession plus prévisibles et optimaux ?

Dans cet épisode de What’s up, Corporate Finance?, Thorsten Gladiator, Managing Partner chez Investec, et Sebastian Markowsky, Managing Director, échangent avec le journaliste économique Michael Hedtstück sur les enseignements que les entrepreneurs peuvent tirer des fonds de private equity en matière de préparation stratégique à la cession.

Les questions clés abordées :

  1. Que peuvent réellement apprendre les entrepreneurs des « Kings of deals » – les investisseurs financiers – en matière de préparation à la cession ?
  2. Existe-t-il un décalage manifeste entre la perspective à long terme adoptée par les fonds de private equity pour préparer leurs sorties et les horizons de planification M&A des dirigeants d’entreprise ?
  3. Quels sujets doivent impérativement être clarifiés en amont d’un processus M&A, plutôt que d’être laissés à l’appréciation de l’acheteur potentiel ? Dans quelle mesure est-il essentiel de bien répéter l’equity story et la présentation du management ?
  4. Quelle est la réalité pour les entreprises de taille intermédiaire ? Dans quelle mesure les dirigeants sont-ils prêts à s’inspirer des pratiques des fonds de private equity ?

Cliquez ici pour écouter le podcast :

What’s up, Corporate Finance? est un blog et un podcast du Finance Think Tank Network. Grâce à des analyses régulières et des décryptages approfondis sur des sujets liés au private equity, private & venture debt, corporate & investment banking, M&A, au financement et au restructuring, ils décryptent l’univers de la finance d’entreprise avec expertise et passion journalistique.

🎙 Écoutez le podcast, disponible sur toutes les plateformes d’écoute.

🎧 Web-Player: https://lnkd.in/eqKyB8Z4
🎧 Apple Podcasts: https://lnkd.in/eX3sVfXE
🎧 Spotify: https://lnkd.in/eEuiMVdH
🎧 Amazon Music: https://lnkd.in/ec4p7jDn
🎧 Deezer: https://lnkd.in/exVMqyje

Notre équipe a été reconnue comme l’une des plus actives en 2024 en LBO, M&A et Debt Advisory selon l’étude annuelle menée par CF News, le media digital de référence de l’actualité des opérations de haut de bilan.

L’équipe se place une nouvelle fois sur les premières marches des classements :

Sous la direction de Michel Degryck, l’équipe française forte de 40 professionnels multisectoriels, a continué à travailler sans relâche dans un environnement de marché chahuté, et à délivrer des solutions sur mesure de grande qualité aux acteurs du private equity, aux entrepreneurs, aux groupes familiaux, et aux grands groupes.

Un grand merci à nos clients et partenaires pour leur confiance renouvelée.

« Cette reconnaissance témoigne de la confiance que nos clients nous accordent et de l’engagement sans faille de notre équipe. Nous restons déterminés à leur apporter des solutions innovantes et adaptées à leurs enjeux stratégiques. »
— Michel Degryck

Téléchargez les Leagues Tables 2024

Investec France une nouvelle fois récompensée dans la catégorie Banque d’affaires : meilleure équipe LBO Small to Mid cap avec un Trophée d’Or, lors de la cérémonie des Trophées des leaders de la Finance de Décideurs Leaders League, qui s’est déroulée le 29 mai dernier à Paris.

Félicitations à toutes nos équipes pour leur travail remarquable, et un grand merci à nos clients pour leur confiance et leur soutien.

Lauréats 2024 – Sommet des Leaders de la Finance

Introduction

INCREASING HEALTH AWARENESS AND CHANGING LIFESTYLES HAVE LED TO A SURGE IN DEMAND FOR DIETARY SUPPLEMENTS. THIS DEMAND HAS FURTHER INCREASED DURING THE COVID-19 PANDEMIC, WITH A STRONG GROWTH FORECAST FOR THE MARKET VOLUME IN EUROPE IN THE NEXT TEN YEARS.

In recent years, notable transactions and innovations have characterized the supplement market in Germany. The number of start-ups in the sector has been at a high level, as they were able to quickly gain significant attention and market share through targeted marketing, for example through social media.

For Germany, we identified more than 400 relevant companies in the sector. From these, we have summarized what we consider to be the 40 most attractive in a ranking. To accomplish this task, a comprehensive review of all 400 companies was conducted, assessing them based on five key factors deemed relevant to our evaluation criteria: revenue, revenue growth, employee growth, web traffic, and diversity of distribution channels served. In all areas, a higher number correlated with a more favorable ranking.

In order to be included in our ranking, companies had to possess a unique characteristic that sets them apart from their peers. This could be anything from an extraordinary story or an emerging trend, to a unique market approach or growth pattern. Our Fabulous 40 list consists only of companies that have this unique quality. This means that even smaller companies have the potential to make it to the top of our Fab40 list. It is worth noting that all companies on our list are considered to be among the top 10% of companies in their sector.

Investec has acquired a strong expertise in the Healthcare sector by accompanying large groups, entrepreneurs, and mid-caps in their sales processes, acquisitions, and financings. Together with Investec as a significant majority shareholder, Investec has a global reaching network of M&A professionals.

The Rheingau Music Festival is one of the largest music festivals in Europe and organises over 170 concerts every year throughout the region from Frankfurt and Wiesbaden to the Middle Rhine Valley.

Unique cultural monuments such as Eberbach Monastery, Johannisberg Castle, Vollrads Castle or the Wiesbaden Kurhaus as well as picturesque vineyards are transformed every summer into concert stages for stars of the international classical music scene and interesting up-and-coming artists from classical music and jazz to cabaret and world music.

In over 30 years, the Rheingau and its festival have become a centre of attraction for music enthusiasts from all over the world in a unique interplay of culture and nature, music, enjoyment and joie de vivre.

Investec is delighted once again to sponsor the Rheingau Music Festival 2024 and invites you to join us from 22 June to 7 September 2024!

A special feature this year? For the first time, there will be two opening concerts: Traditionally, the festival opens in the Eberbach Monastery, followed by another opening concert in the Kurhaus Wiesbaden. This year’s focus artists are also particularly outstanding: violinist Christian Tetzlaff, cellist Anastasia Kobekina, pianist Bruce Liu and jazz saxophonist Candy Dulfer.

Once again this year, various themes and focuses will ensure a varied and exciting programme. Under the motto « Spot on: Hollywood », the world of film music comes to life in twelve concerts. Under the motto « Brazil! », the contrasts and beauties of the country will be explored musically. The programme is also dedicated to the works of Antonín Dvořák and a true classic: Vivaldi’s « Four Seasons ».

The stages of the 37th festival season will be graced by numerous stars from the worlds of classical and pop music. Highlights include star pianist Lang Lang, singers Álvaro Soler, Max Mutzke and Max Giesinger, violinist Anne-Sophie Mutter, opera singer Rolando Villazón and entertainer Eckart von Hirschhausen.

Investec has been a committed sponsor of the Rheingau Music Festival for more than 15 years. This long-standing partnership is characterised by our deep appreciation for the arts and a strong connection to local culture. We look forward to experiencing a rousing summer full of music together with you again this year.

You can view the detailed program here.

Interview

As we enter 2024, the M&A landscape shows signs of recovery, albeit cautiously.

In the episode of the February 20, 2024 of No Ordinary Wednesday, Jeremy Maggs in conversation with Investec experts Jürgen Schwarz, Marleen Vermeer, and Kilian de Gourcuff, Investec’s Head of Cross-Border Finance and International Advisory Charles Barlow, on what key sectors, trends and risks to keep an eye on in 2024.

Click here to listen to the podcast: 

Where does opportunity lie for dealmaking in 2024? (investec.com)

Hosted by seasoned broadcaster, Jeremy Maggs, the No Ordinary Wednesday podcast unpacks the latest economic, business and political news in South Africa, with an all-star cast of investment and wealth managers, economists and financial planners from Investec. Listen in every second Wednesday for an in-depth look at what’s moving markets, shaping the economy, and changing the game for your wallet and your business.

Listen to the best of No Ordinary Wednesday: https://www.investec.com/en_za/focus/no-ordinary-wednesday-with-jeremy-maggs.html

Extensive track record combined with deep industry knowledge

Interview with Jürgen Schwarz, Managing Partner of Investec about the role aggregators play in the e-commerce market:

This video answers these questions and give you an idea and overview in a few minutes.

The dynamic and rapidly changing consumer goods sector is facing major challenges due to advancing digitalisation and the emergence of new disruptive business models. We drill down into sub-sectors that show strong growth potential and/or an increase in consolidation.

In the context of this fiercer competition and increasing consolidation activity, we support you in identifying and realising entrepreneurial opportunities.

The majority of our transactions are cross-border – within Europe and beyond – and are carried out by an international team of experienced advisors with extensive sector and transaction expertise.

Financial restructuring for Shareholders & Lenders

Helping clients to navigate uncertainties while putting their businesses back on track

Interview with Jürgen Schwarz, Managing Partner of Investec about Restructuring with the help of a M&A process:

This video answers these questions and give you an idea and overview in a few minutes.

Sale from insolvency

Due to our pan-European presence and track record we are well placed to advise on international and cross-border restructurings.

Our international sector teams implement more than 50 transactions p.a. and in many sectors they know the active buyers, the acquisition criteria, the behaviour of individual decision makers. We also have an up-to-date overview of the market prices paid, which vary considerably over time and depending on the positioning in the sector.

Investec has direct access to numerous international equity and debt capital providers and has carried out numerous restructurings ranging from approximately 10 million Euros to several billion Euros.

Why the German industry has a great need for investment.

German industry is facing significant challenges, including the effects of digitalization, the shift from analogue to digital business models, the need for environmental protection measures and sustainable production processes, as well as demographic change, which is leading to a shortage of skilled workers and an ageing workforce. In order to successfully master these processes, significantly higher investment efforts are required than in the past.

Digitalization and Industry 4.0: At present, Germany ranks at best in the middle of the EU in terms of the use of digital technologies in the economy1. German industry must invest in digital technologies and automation to remain competitive. However, in order to catch up with comparable countries, IT and digitalization investments in Germany would have to double or triple from EUR 49 billion to EUR 100 to 150 billion annually. In the SME sector alone, digitalization expenditure would have to increase from EUR 18 billion in 2019 to EUR 35 to 50 billion per year.

Sustainability and environmental protection: Companies are increasingly focusing on environmentally friendly technologies and processes in order to achieve sustainability goals and reduce their environmental impact. These investments not only serve to protect the environment, but also contribute to long-term competitiveness. A recent study commissioned by KfW puts the climate protection investments required to achieve the goal of climate neutrality by 2050 at around EUR 5 trillion or around EUR 190 billion per year1. This enormous sum makes it clear that considerably greater efforts will be required to achieve the target than has been the case to date.

Read the complete Insight here.

Thorsten Gladiator, Managing Partner Investec: As corporate finance advisors, we see the importance of ESG in general and sustainability aspects in particular in almost every transaction, both in M&A situations and in financing mandates.

Equity and debt investors place a strong focus on ESG compliant investments in the interest of their financiers and / or due to investment criteria that are binding for them.

For business sellers as well as CFOs, this has pricing and process consequences:

The following article from AIM – Advice in Motion highlights the various aspects for medium-sized companies and shows examples of successful ESG strategies.

Opportunities and challenges of sustainability for smaller and medium-sized enterprises

The sustainability performance of a company today is the decisive factor for its competitiveness tomorrow. In this context, medium-sized companies in Germany in particular are faced with tasks whose extent has not yet been fully recognized in many cases and which involve major challenges in terms of resources, time and expertise.

Even though sustainability is a ubiquitous and much-discussed topic that is omnipresent both in the media and in public debate, it is by no means a new issue. Rather, sustainability has a long and exciting history that spans centuries and has been shaped by various actors and concepts.

Where do the roots of sustainability lie?

As far back as the Middle Ages, the moral ideal of the honorable merchant played a decisive role in promoting sustainable principles. Many a family entrepreneur rightly sees himself or herself in the tradition of the honorable merchant and aligns his or her business conduct with principles such as honesty, responsibility and sustainability.

In the 18th century, the Saxon chief miner Carl von Carlowitz coined the term sustainability in his work « Sylvicultura Oeconomica. » He introduced the idea that forest resources should be managed sustainably by cutting only as much wood as can naturally grow back. What was interesting about Carlowitz’s concept of sustainability was that sustained yield was precisely not antithetical to sustainability. Rather, forestry yield acted as the cornerstone for this oft-cited source of the concept of sustainability. The mining area of the Erzgebirge was simply dependent on the sustainable use of wood for construction, mining and smelting purposes.

Another significant milestone in the development of sustainability was the Brundtland Report, published in 1987 under the title « Our Common Future ». The report defined sustainable development as « development that meets the needs of the present without compromising the ability of future generations to meet their own needs. » Here, sustainability clearly went beyond a purely economic consideration. The report emphasized the need to integrate economic, social and environmental aspects to create a sustainable future.

Since then, the understanding of sustainability has evolved to encompass a variety of dimensions. One key concept is ESG (environmental, social, governance) criteria, which encompass environmental, social and governance-related factors. Differentiation of individual sustainable development goals is achieved through the United Nations Sustainable Development Goals (SDGs), which were adopted in 2015. The SDGs include 17 global goals to promote sustainable development at the economic, social and environmental levels by 2030. These goals range from poverty reduction, health, education and gender equality to renewable energy and sustainable cities.

The SDGs are an excellent framework for linking the principle of sustainability with economic, ecological and social development and provide a suitable orientation framework for a company’s sustainability strategy:

Nowadays, at the current edge of development trends around sustainability, so to speak, ESG expression is thus considered a leitmotif and fundamental approach for responsible and sustainable development. It is about combining economic, social and ecological aspects in order to create a world worth living in for present and future generations.

The individual SDGs are suitable targets for integrating ESG into corporate strategies, as they are more concrete and easier to measure using indicators than the more fundamental ESG concept.

Importance of the midmarket

As the backbone of the economy, the SME sector comprises a large number of companies that operate both regionally and internationally. It is of great importance for economic performance and employment in the country. Around 2.5 million companies in Germany belong to the Mittelstand, in the definition of a small and medium-sized enterprise (SME). These range from microenterprises to medium-sized companies with up to 250 employees, which generate around one-third of total sales for Germany and employ more than half of all employees.

Expectations around an ESG expression of the SME business model arise in a wide variety of internal and external stakeholder groups. Typical stakeholders include shareholder families, employees, customers and suppliers, financiers (EC and FC), NGOs and the media, and to an increasing extent regulatory policy.

The reasons for which companies address ESG requirements also vary. The most common motives include:

The majority of companies are in the early stages of sustainability management.

Pressure to act and status quo around ESG in SMEs

The pressure to develop and implement ESG strategies is immense and relevant stakeholders are demanding this. In addition to opportunities of an ESG orientation such as cost reduction, successful positioning of the company, revenue and profitability advantages, there are clear business risks of a lack of consideration of sustainability requirements up to the withdrawal of the « license to operate » (violation of regulatory requirements, exclusion from supply chains, lack of financing or perspective withdrawal of insurance coverage).

If, against this background, surveys come to the conclusion that, despite pressure to act and explicit expectations of the relevant stakeholders, only around half of the companies in the SME sector have developed and implemented ESG strategies, the question arises as to why.

A ´decisive factor is the  lack of  time and resources in many SMEs to deal with the challenges and requirements of sustainability. Time is traditionally a scarce commodity, especially in owner-managed companies. Teams and specialists for ESG strategies and sustainability cannot simply be plucked out of the ground: the market for ESG specialists is empty and salary expectations are correspondingly high.

Support from external consultants is the obvious choice, but here, too, capacities are stretched and for many a large consulting firm it is obvious and more lucrative to advise the large DAX companies with entire teams of consultants before they delve into the peculiarities of the business model of a geographically decentralized SME.

AIM – Advice in Motion GmbH

This is where AIM, as an independent sustainability consultancy and partner in the Investec network, can provide effective support. AIM thinks and speaks medium-sized. Their clients include medium-sized companies from a wide range of industries in Germany, France, Portugal, Luxembourg and Switzerland. AIM supports with:

Examples of successful ESG implementation in medium-sized companies:

I. Initial situation: Sustainability requirements for a medium-sized company in the wood industry in Germany with around 1,200 employees. In addition to the intrinsic motivation of the shareholders, a major impetus for action arose from the initiative of the industry association, which demands the implementation of climate protection measures for all member companies. Another impetus for action was for the company, as a supplier in the value chain of a large trading house, to support its ambition (climate protection and other social goals throughout the supply chain). AIM supported the development of a climate strategy, the calculation of the corporate carbon footprint and the compensation of unavoidable emissions in order to achieve climate neutrality.

II. Initial situation: market positioning of a 5-star resort hotel in Provence with its own vineyard. A key impetus for action was to reconcile a luxury resort with sustainability requirements and climate change mitigation measures. AIM developed an ESG strategy for the resort. This was based on a selection of sustainable development goals (SDGs) to which the resort can contribute. Corresponding measures were defined and implemented. At the same time, climate neutrality was achieved for the resort by offsetting unavoidable emissions. (AIM has implemented a comparable project with a resort in Portugal, which has since been nominated for the Sustainability Award of the Portuguese Tourism Association).

III. Initial situation: product positioning for a manufacturer of high-quality competition racing bikes from Switzerland. The company wants to make competitive sports compatible with sustainability and climate protection in particular. In order to provide buyers and users of the competition bike with an assessment of the carbon footprint of the racing bike product, AIM calculated the product-related carbon footprint for the bike, taking into account all phases of the life cycle of the racing bike, from cradle to grave.

IV. Initial situation: A medium-sized holding company with around 1000 employees in Germany will be subject to mandatory sustainability reporting in accordance with CSRD for the first time from the calendar year 2024. The extended reporting affects around 15,000 companies in Germany. The company’s sustainability performance will be considered from two perspectives: the impact of sustainability aspects on the corporate business model and the impact of the company’s activities on the environment and stakeholders. At the same time, the company aims to create a comprehensive ESG strategy that brings together all the actions taken to date to support sustainability goals. AIM has worked with the company to develop an ESG strategy that is aligned and parameterized with metrics to best prepare for upcoming sustainability reporting.

The development of company specific ESG and climate strategies and the requirements associated with the expansion of sustainability reporting pose major challenges for entrepreneurs in the SME sector. We support your company effectively in the sustainable transformation to ensure together with you the future and the competitiveness of your company for you and future generations.

Author: Andreas Kuschmann, Founding Partner AIM – Advice in Motion GmbH.

www.advice-in-motion.de

Unlocking Working Capital potential to fuel operational growth

Amidst the aftermath of the COVID-19 pandemic, geopolitical tensions, and persistent inflation, it is crucial for companies to prioritize efficient working capital management (WCM) in order to navigate near-term uncertainty and foster growth during the economic recovery. We identified four key reasons that make WCM crucial:

1. Economic headwinds are expected to be persistent: Despite the recovery of most advanced economies to pre-pandemic levels of output, growth in 2023 is projected to be sluggish. Recent downward revisions in growth forecasts highlight the challenges that lie ahead. For instance, the GDP growth forecast for the EU has been reduced to around 0.75%, a mere one-fifth of the previous year’s growth1. The IMF has also predicted that Germany will be the second weakest G7 economy next year, following the UK, with an anticipated GDP contraction of 0.11%1. Moreover, recent data reveals that the German economy contracted slightly for two consecutive quarters, by 0.5% in Q4 2022 and 0.3% in Q1 20232.

2. Inflationary pressure remains high until at least 2024: The Russian invasion of Ukraine has led to skyrocketing energy and food prices, resulting in persistent inflationary pressures. Additionally, rising material costs and supply chain challenges pose a threat to inventory levels, leaving businesses susceptible to supply shortages and price fluctuations. Although the IMF predicts a decline in inflation in Germany from 8.7% in 2022 to 6.1% in 2023, a return to the 2% target is not expected until at least 2025. Consequently, some companies have turned to forward buying and speculative upstocking. However, this strategy strains working capital and depletes cash reserves.

3. Interest rate peak has probably been reached: Central banks across the world have continued to tighten monetary policy and roll back quantitative easing to defeat red-hot inflation. In Europe, the ECB has raised its key interest rate by 0.25 percentage points to 3.5% in June, marking the eighth consecutive increase since July 2023. This rate-hiking cycle is the fastest in the ECB‘s history. ECB President Christine Lagarde announced further rate hikes in July, indicating an ongoing trend. According to a survey conducted by Bloomberg, it is projected that the peak will be reached at 4% in September 2023. Consequently, financing and working capital is becoming increasingly expensive.

4. Corporate cash flows are coming under increasing pressure: According to PwC, Days Cash on Hand of companies decreased by 10% in 20214. In 2022, the intensified efforts of central banks worldwide to combat inflation by raising interest rates have significantly impacted corporate cash flows. Mounting challenges stem from factors such as cost inflation, supply chain disruptions, and geopolitical events like the war in Ukraine, which have also influenced lender sentiment and global debt markets. In Europe, institutional loan issuance suffered a decline of 42% so far in 2023 compared to the previous year (as of July)5. As a result, the management of liquidity and working capital has become increasingly important.

Thorsten Gladiator, Managing Partner Investec: Supply chain issues and increasing (raw) material prices lead to higher funding requirements in working capital. A variety of working capital financing products allows for tailor-made solutions.

Click here to read and download the report.

Current market conditions are affecting the use of classic financing options and opening a market for alternative financing products. In this Insight we explain why these can be more attractive for companies and why it is helpful to involve an advisor.

1.    Global uncertainty paralyses German economy

Political events and crises such as the war in Ukraine, the Covid pandemic or the Brexit continuously cause financial challenges for companies, such as cost and interest rate increases, which lead to uncertainties in corporate planning. This “perfect storm” to which companies and investors alike have been exposed for years, leads to changes in the financial markets.

Interest rate hikes and additional regulations by capital providers are influencing the supply and demand of financing and investment options worldwide. Although the expected winter recession in Germany failed to materialize and the ifo business climate index recorded its fourth consecutive increase, economists warn against overly optimistic expectations, because despite the absence of a worst-case scenario, interest rate cuts are unlikely in the medium term.

Latest turbulences surrounding Silicon Valley Bank and the Swiss National Bank’s support for Credit Suisse show that the economic environment remains unstable.

2.    Reluctance on the part of capital providers

The need for crises related reforms in the German economy poses risks for companies to maintain their current competitive position and at the same time opens new business opportunities. The resulting strategy considerations and implementations require additional capital, while at the same time the conditions of the financial markets are more restrictive:

→30% to 40% of companies are dissatisfied with the commitment of their banks

The historically strong buyer’s market with simultaneously extremely high liquidity from capital markets is increasingly transforming into a seller’s market in favor of the capital providers due to these trends.

The rise of geopolitical risks, commercial uncertainty and cautious capital markets are reflected in weaker corporate forecasts, which lead to a decrease in corporate valuations (multiples) and poorer corporate ratings. In the capital markets, interest rates have reached levels not seen for more than one decade based on a combination of rising central bank rates and higher risk premiums for corporate loans.

SMEs find themselves in a sandwich position between growing funding requirements and tougher credit markets. Therefore, it is difficult for SMEs to obtain financing on attractive terms under the given conditions, so that the following problems arise:

  1. High capital requirements to implement strategy and maintain market position (including expansion, innovation, business orientation)
  2. Lower cash flow generation due to higher capital commitment, especially in working capital, and declining profitability due to rising costs
  3. Continuous liquidity shortage and increasing (re-)financing requirements
  4. Short-term, restrictive, and costly financing offers

3.    Alternative financing options

Companies with weaker ratings are increasingly  rejected by risk-averse capital providers, which is why providers of alternative forms of financing are gaining importance and popularity.

These can serve companies that are ignored by traditional capital providers (such as banks) due to their risk profile. New market participants often offer additional advantages compared to standard bank loans, such as more flexible and more custom-fit terms of financing (especially with regard to longer maturities and bullet repayment requirements).

With increasingly competitive offers by alternative lenders, a trend towards more diversified financing structures develops. This applies to both long-term and short-term financing.

However, new, and sometimes complex financing products increase the risk of making wrong and, above all, costly decisions and demonstrate the need for a well-thought-out financing strategy as well as a professional dialogue between companies and capital providers.

Excellent financing advice requires deep insights into the national and international capital markets. Our experienced advisors at Investec help structure the financing strategy and its subsequent implementation. Through our extensive network and access to banks, alternative lenders, loan, mezzanine, and equity funds, we find the most suitable capital providers at the best possible conditions.

M&A as an Enabler of Transition

Change ahead in automotive downstream

“A high degree of innovation and shifting consumer demand pose a variety of challenges for traditional automotive downstream players while creating chances for disruptive new market entries. The fight for scale and market position has only just begun.” 

Peer Günther, Senior Advisor Automotive

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