MuMAC 2016 HIGHLIGHTS

Investment, Digitization and Globalization in Times of Disruption

Dear clients, friends and conference participants,

On 20 September 2016, McDermott Will & Emery hosted the sixth Munich M&A Conference (MuMAC). A total of 290 participants, mainly from financial investors, family of­fices and operating companies, collectively made MuMAC 2016 the most successful and enriching year for this confer­ence so far.

The 2016 agenda provided insightful and detailed discussion of strategic, economic, cultural, financial and legal devel­opments in cross-border M&A and private equity markets, especially in the sectors of automotive, health, TMT and real estate. Our panels highlighted investment from Asia and the United States into Europe, and we learnt about Bahrain Mumtalakat’s investments into Europe and the United States.

We would like to thank McDermott’s co-sponsors, Alvarez & Marsal and PricewaterhouseCoopers, and our conference partners, Lincoln International, Raymond James, IMAP, Meyerhöfer & Co, and Serafin Unternehmensgruppe.

In addition, we would like to extend special thanks to our key­note speaker, Callum Mitchell-Thomson, head of investment banking at J.P. Morgan, who provided fascinating insight into the likely consequences of Brexit. We were somewhat relieved by his optimistic view into the European future.

We are also very grateful for the impressive contributions of our panel participants, which are detailed in the pages that follow. We were delighted to welcome this year’s conference guests for the first time to the great ballroom of the Bayeri­scher Hof and the gallery on the first floor. This much larger room contributed to a generous and lively atmosphere. In our immediate feedback survey, 94 per cent of participants rated MuMAC 2016 overall as good or very good.

As last year we made a donation from the modest proceeds of the conference. We donated an amount of € 2,500.00 via a German charitable organisation to the Bayerische Haus Odessa for the economical and entrepreneurial education of start-up entrepreneurs from the region of Odessa, Ukraine.

MuMAC will return in 2017. We have reserved the grand ballroom and gallery again, and we have invited the head of the Munich Security Summit, Professor Wolfgang Ischinger, to be our keynote speaker. We will once again feature stim­ulating topics and panel discussions featuring experts on in­dustry business development, family office direct investments and distressed investments.

 

Please note the date and location of this year’s conference: Tuesday, 19 September 2017 at 9 am in the Hotel Bayeri­scher Hof. We look forward to seeing you then, and in the meantime, if we can be of any assistance worldwide, please do not hesitate to contact us.

CHRISTIAN VON SYDOW

Conference Co-Chair
+49 89 12712 141

DR. NIKOLAUS VON JACOBS

Conference Co-Chair
+49 89 12712 231

ACTIVIST SHAREHOLDERS: EXPERIENCES IN THE UNITED STATES AND EUROPE

Bilal Sayyed, McDermott Will & Emery, moderated a thrilling panel of acitivist shareholders from three juristdictions: Roy Katzovic of Saddle Point Group, United States, Till Hufnagel, Petrus Advisers, London and Dr Olaf Marx of MCGM, Munich. They were joined by A&M Managing Director Germany, Thomas Kolaya. Mr Kolaya advises companys how to avoid to become a target of activist shareholders. The panel was a fabulous finale of the conference.

INVESTMENT FROM THE GULF REGION INTO EUROPE AND THE UNITED STATES
Raed Fakhri, vice president of investments at Bahrain Mumtalakat Holding Company (Mumtalakat), presented the company’s investment strategy and showcased some of its re­cent international investments. Mumtalakat, the investment arm of the Kingdom of Bahrain, is focused on growing and diversifying its portfolio through commercially sound and sustainable investments across multiple industries and geog­raphies. Its key sectors of focus are logistics, technology, me­dia and telecommunications; real estate and tourism; health care; consumer; industrials and manufacturing; and financial and general services. In the past two years, Mumtalakat completed nine interna­tional investments, including the acquisition of a stake in PRO Unlimited, a leading provider of software and services in the United S...
CROSS-BORDER REAL ESTATE
Tobias Huzarski (KKR Kohlberg Kravis Roberts), Frank Müller (Corpus Sireo), David Poremba (Eastdil Secured) and Dr Jens Ortmanns (McDermott) hosted MuMAC’s first real estate panel and discussed current trends in the European real estate private equity market. As panel head, Dr Ortmanns started the discussion by high­lighting the diversity of real estate as an asset class and the broad range of market participants in Europe, including pri­vate equity funds, hedge funds, pension funds, insurers, and other national and international institutional investors (re­cently including many Asian buyers), as well as family offic­es, developers and high-net-worth individuals. Mr Huzarski initiated a lively discussion about the role real estate plays for private equity funds as part of their overall inv...
LIFE SCIENCES, HEALTH AND PRIVATE EQUITY: LICENSING AND STRUCTURED M&A TRANSACTIONS
Christoph Brandenberger (Healthios Capital Markets), Dr Irina Staatz-Granzer (Staatz BD & Strategy), Dr Sven Oleownik (Gimv Germany), Dr Erich Tauber (Themis Bioscience), Charlie Troup (Duke Street) and Kristian A. Werling (McDermott) discussed licensing and structured M&A transactions. Emmanuelle Trombe (McDermott) mod­erated the panel, which focused in particular on the conver­gence of M&A and licensing, structured transactions in pri­vately held companies versus public M&A, and litigation risks related to due diligence obligations. In discussing the convergence of collaboration/licensing and M&A, the panel pointed out that an increasing number of collaborations between start-ups and industrials include an equity component. Alternatively, such collaborations, with or ...
AUTOMOTIVE, DIGITAL TRANSFORMATION AND PRIVATE EQUITY
Florian Kähler (ECM Equity Capital Management), Dirk Liedtke (Raymond James), Martin Schwarzer (PwC), Alexan­der Sixt (Sixt), and Fabian Wasmus and Thomas von Werner (Penta Investments) discussed the impact of digitalisation on the automotive sector. Dr Joachim Koch (IMAP M&A Con­sultants) moderated the panel. The automotive industry is changing like never before as a result of digitalisation. In an environment where volume growth will decrease in the next decade, digital leadership in the automotive industry is expected to translate into growth. The panel first discussed the impact of digitalisation on small and medium-sized automotive suppliers. By implementing a homogenous and connected IT system within a company and between companies along the value chain (industry 4.0), companies ...
CROSS-BORDER M&A ASIA AND EUROPE
This session addressed the growing M&A activities of Asian investors in Europe, with a focus on Germany. Wei Wang (PwC Germany) led the panel, which included Dr Mei Wu (Joyson Holdings Europe GmbH), Jacob Hoyeon Won (Locus Capital Partner, the ally of Global M&A Partners), Dr Qing Ding (Shentou Capital) and David Dai (MWE China Law Offices). All panellists agreed that the current trend of Asian investors conducting transactions in Europe will be long-term. This is particularly true of Chinese investors, which have been con­sistently reaching new heights in terms of deal intensity and volume during the years following the last global economic crisis. The panellists also shared the view that, contrary to the overwhelming public consensus in Europe, the governments of both Korea and C...
CROSS-BORDER M&A USA AND EUROPE
This panel featured the insights of Melville Mummert (Raymond James), Torsten Krumm (HQ Equita GmbH), Dr Jan-Mathias Kuhr (Kion Group AG), Samuel Wales (McDermott), Patrick Schaich (Riverside Europe Partners GmbH) and Dr Burkhard Weber (Lincoln International LLC). Mr Mummert opened the discussion with questions revolving around the major themes of the 2016 conference, including digitisation, globalisation and disruption: What role will Brexit play in cross-border M&A? What are the implications of digitisation/digital trends for M&A processes? How will disruptive macroeconomic, geopolitical, capital markets and banking trends affect cross-border M&A? Are Europe and the United States currently buyers’ or sellers’ markets? What were the valuation trends of 2016? Each organisatio...
M&A AND PRIVATE EQUITY MARKET 2016
This session featured Dr Michael Drill (Lincoln Internation­al AG), Dr Andreas Fendel (Quadriga Capital Beteiligungs­beratung), Philipp Haindl (Serafin Group), Jan Mayerhöfer (Mayerhöfer & Co Corporate Finance Beratung), Tristan Nagler (Aurelius Investments) and Steve Roberts (PwC Germany), and was moderated by Dr Nikolaus von Jacobs (McDermott). Diving into an evaluation of the current market, the panel found that the overall mood is good despite large amounts of money continuing to chase a limited number of opportu­nities, leading to a very active, if not crowded, market place. More strategic players are active in the market than in recent years, including many from the United States and Asia, and China in particular. A multitude of new market players, in­cluding newly established fi...
J.P. MORGAN KEYNOTE: CROSS-BORDER M&A IN THE SHADOW OF BREXIT
Callum Mitchell-Thomson, head of investment banking for Germany, Austria and Switzerland for J.P. Morgan, led the MuMAC audience through the expected consequenc­es of Britain’s exit from the European Union (Brexit). Mr Mitchell-Thomson pointed out that whilst the immediate reactions to the vote were quite dramatic, within a week they had quieted substantially. Similarly, at first it appeared that the outlook for economic growth in 2017 for the Europe­an Union, the United States and, in particular, the United Kingdom itself would be worsened materially. Within three months of the referendum, however, the equity capital mar­kets had recovered. On average, cross-border M&A makes up 30 per cent of the overall M&A market. Within Europe, the United Kingdom historically has represented 30...