Special Reports for 2008

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Despite hopes that the mid markets might escape the worst impact of the credit crunch, deal values and volumes now look likely to fall as the uncertainty continues, writes Christopher Spink.

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Fewer companies may be floating on AIM but the market increasingly acts as a playing field for international consolidators, writes Christopher Spink.

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With deal flow in the mid-markets still relatively strong, private equity firms in this space have made a number of significant appointments, writes Sandrine Bradley.

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Mid-market private equity firms are turning to buy-and-build plans to achieve growth in an increasingly hostile M&A environment, writes Robert Venes.

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Lenders are more cautious, even on smaller deals, but if sponsors have a good proposition, put in more equity and have patience, then debt is available. Patrick McCurry reports

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Thomas Meyding, partner in the Stuttgart office of CMS, reviews current practice in the German mid-market

Many financial advisory firms are likely to report record revenues for last year, showing the mid markets' evergreen qualities. Thomson Financial shows who has been active.

Thomson Financial's comprehensive league tables show which law firms are leading the mid market field across Europe. Deborah Cust assesses the competition.

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Western economies need Russian gas, but Russia also needs Western money to rebuild the country, despite having huge foreign exchange reserves. The relationship is symbiotic and provides massive opportunities for cross-border M&A and partnerships. The occasional political spats between the US and Russia, or between the UK and Russia, have failed so far to impact the rise and rise of the number of Russian M&A deals. The March presidential elections will not impede this phenomenon. Adam Durchslag reports

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Adding top Russian and global nickel miner Norilsk Nickel to top Russian and global aluminium producer UC Rusal could make for a “Russian BHP Billiton,” but the merger is not clear cut. Quentin Carruthers reports

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Whereas five years ago it was the Western oil industry that saw Russia as the next big frontier for investment, it is now builders of power plants, roads, railways, ports and hospitals that are queuing up to plough money into the country – along with the specialised funds that invest in such projects. Andrew Cavenagh reports

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Russia’s most powerful businessmen are branching out beyond the publicly guarded natural resources sectors into areas benefiting from the Russian consumer boom. Christopher Spink reports

International property adviser Cushman & Wakefield (C&W) expects investment in commercial property to reach US$7bn-US$7.5bn, as rents and yields rise across all sub-sectors.

The Western High Speed Diameter project in St Petersburg is a pilot scheme that is likely to have far-reaching consequences for private sector involvement in developing Russia’s road networks.

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Russia has followed Norway and adopted an oil price-based sovereign fund that has raised US$150bn. Robert Venes looks at how it could deploy its capital outside the country.

Jochen König, managing director, head of RBS Structured Finance Germany - Real Estate & Leveraged Finance, looks at how the credit crunch has affected the European leveraged buyout market.

If you could put a date on when the credit crunch started, why not Thursday July 26 2007?

Independent mezzanine players are plugging the gap left by shrinking senior packages in the mid-market. Sarah Young reports

Private equity firms are looking at innovative ways of getting round the lack of willingness to lend by the mainstream banks. Henry Gibbon reports

In the past 12 months The Royal Bank of Scotland (RBS) has continued to build on its Leveraged Finance franchise, strengthening its global presence while maintaining a lead position in the European marketplace and closing the two largest LBOs ever in central and eastern Europe - Bulgarian Telecom and Borsod Chem.

The threat of leveraged loan defaults is hovering on the horizon, but when and how hard these loans might fall is anyone’s guess. Sandrine Bradley reports

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Distressed debt opportunities and the disintermediation of Wall Street are among the hottest current issues for private equity, as about 2000 delegates to this year’s Super Return conference heard. Keith Boyfield reports from Munich

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Fund investors briefly stepped into the spotlight in Geneva to support European private equity, despite concerns about its short-term future. Robert Venes reports

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Central and Eastern Europe’s convergence with the West has created a unique opportunity, probably never to be repeated. This fact has not been lost on investors, who are rushing to position themselves for years of growth. Justin Pugsley reports

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Fundraising for Central and Eastern Europe broke records in both 2006 and 2007. Robert Venes looks at what is attracting institutional investors to the region.

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The credit crunch is making it harder for some to complete transactions and fewer are achievable, but there are still good deals to be done. Henry Gibbon reports

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Bulging pockets have not so far been enough to ensure the Czech utility giant’s expansion in Central Europe. Dominant state ownership of energy assets in the region and increasingly intense competition for assets that do come to market are proving difficult barriers for CEZ to overcome. Sarah Young reports

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The construction sector in Central and Eastern Europe continues to grow at above the rate of many of the region’s burgeoning economies. This is encouraging acquirers to look at consolidation opportunities, writes Christopher Spink.

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Mention Serbia, Croatia or Albania and they impart a warm glow of déjà vu to some investors. They see the next economic success stories in the making. A degree of caution should, however, be exercised. Justin Pugsley reports

Kosovo is Europe’s newest state, having declared independence from Serbia on February 17. Serbia doesn’t recognise that declaration but Kosovo theoretically owes some €1bn in debt relating to former Yugoslavia, which is technically in Serbia’s name. It would cost Kosovo €50m–€100m a year to service if it was to take it on.

Mark Mobius, emerging markets guru and executive chairman of Templeton Asset Management, talks to Justin Pugsley about potential M&A activity in Central Eastern Europe.

Italian banks have been long-standing, strategic investors in the CEE region, but are reaching ever further into high growth markets. Quentin Carruthers reports

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Despite a lack of debt financing and changes to both the structure and pricing of what credit is available, the current climate may provide the best bets for France’s private equity players. By Robert Venes recently in Paris.

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Despite a lack of debt financing and changes to both the structure and pricing of what credit is available, the current climate may provide the best bets for France’s private equity players. By Robert Venes recently in Paris.

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France’s President Nicolas Sarkozy has every right to defend French interests and companies against unwanted foreign takeovers. But despite his protectionist rhetoric, Brussels has effectively tied his hands. More unpopular than ever at home, he must be seen to be doing something, or he risks riots in the streets of Paris. Adam Durchslag reports

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By this summer France will have a new national champion. GDF Suez will be a utilities goliath and a consolidator. However, can a deal that was largely politically motivated work commercially? Justin Pugsley reports

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With private equity groups in the driving seat, the consolidation of France’s private healthcare industry is set to speed up as the profit-driven private sector increasingly outshines its state-owned counterpart. Sarah Young reports

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The major French luxury goods companies are defying gloomy economic forecasts by exploiting fast-growing Eastern markets. Acquisitions are back on the agenda too. Christopher Spink reports.

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The upheaval among Benelux banks will have significant consequences for mergers and acquisitions, and their financing, across the region. Christopher Spink reports

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Grupo Modelo, Mexico’s number one beer maker behind the Corona brand, will not give InBev, the Brazilian-Belgian brewer of Stella Artois, a clear run when it comes to buying Budweiser owner Anheuser-Busch for US$52bn in cash. Adam Durchslag reports

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After a period of reshaping and being outbid by private equity for assets, corporates in the Netherlands look set to become more acquisitive, writes Sarah Young.

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Energy utilities in Belgium and the Netherlands have become the focus of great interest from the biggest European gas and power companies, as the two countries shape up to become important hubs in the unified market of the future. Andrew Cavenagh reports.

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The Benelux countries have largely been the province of smaller private equity deals, but no one is completely immune to the economic crisis, writes Robert Venes.

Despite the seismic shifts in the Benelux region’s financial sector over recent months, experts are optimistic that M&A activity will pick up in 2009, aided by the financial strength of Dutch public companies that need to restructure. Alexander Wessendorff reports

The legendary deal making skills of Belgian entrepreneur Albert Frere have reshaped his native country’s corporate landscape. He is now set on emerging markets, writes Justin Pugsley.

Last month, BNP Paribas purchased the Belgian and Luxembourg activities of Fortis. Meanwhile, France and Belgium gave Dexia a €6.4bn (US$8.7bn) lifeline to keep it solvent. Henry Gibbon reports