The takeover market is growing strongly in Belgium
The first quarter of 2021 was a record quarter. “This is due to the transformation of the economy, the hunt for yield and more economic stability,” says Koen Dejonckheere, CEOo of Gimv.
In the Benelux the figures show the same trend, with 217 deals worth EUR 18.8 billion. This is a fourfold increase in value compared with the first quarter of last year.
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The speed with which the takeover market recovered is quite surprising. “This time last year we were in the doldrums', says Koen Dejonckheere, ceo of investor Gimv: “With the recovery of the economy, companies are able to make again reliable forecasts and they have visibility on the evolution of their activities”. This is an important factor for those who want to bid.
More and more money are flowing into private equity funds. Pension funds are putting an increased amount of money into these funds in the hope of getting higher returns to meet their pension obligations. On top of that, specialised credit funds help buyers to get cheap money.
And the industry too is moving, spurred on by politicians. “The whole economy has to become greener and more sustainable, and that brings investments with it. Sustainability also means shorter supply lines. Companies are investing in machines and factories in Belgium again. They rely less on cheap China,” says Dejonckheere.
Those three factors - regained visibility, plenty of cheap money and the industrial transformation - will only increase the number of deals.
Source: De Standaard