Vlerick Expertise in Accounting & Finance

It appears the merger and acquisition market in Belgium has reached its turning point. For the first time in six years, the sustained rise in acquisition prices has not continued. However the number of transactions did continue to grow, even though there were considerably fewer foreign acquisitions in 2018. Another striking point is that the acquisition of technology and attraction of talent are gaining importance as motivations for an acquisition. Finally, when it comes to the size of transactions, smaller acquisition deals are on the increase. These are the most important conclusions of the sixth edition of the M&A Monitor, an annual survey of more than 150 Belgian merger and acquisition specialists.

Ensuring effective risk management in any organisation is essential. This report takes a close examination of the practices organisations are adopting to embed risk management practices across the organisation. Using an in depth case study approach, it explores how businesses can overcome the common challenges presented in implementing effective risk management processes and suggests good practices for aligning these to the delivery of strategic goals.

A considerable number of case studies on financial planning have been developed, but it is more difficult to find ones that deal with financial planning in a regulated environment. For the Future Grid Managers Programme, Professor Filip Roodhooft, along with colleagues from the Energy Centre, straight away developed two that play out in the regulated energy sector. In the leading roles are the Belgian distribution system operator (DSO) Eandis, now Fluvius, and the French transmission system operator (TSO) Réseau de Transport d’Électricité (RTE).

Although the 2008 financial crisis is already more than a decade ago, it is still fresh in our minds. Irresponsible lending behaviour by the banks was identified as its leading cause. What determines such behaviour? For his PhD thesis, Thomas Matthys investigated the lending behaviour of banks in three different contexts using data analysis and statistical models. We talked to him about borrowing in the interbank market, the impact of activist hedge funds and expansive monetary policy.

Co-authors Professor Sophie Manigart and Professor Miguel Meuleman explain why the handbook 'Entrepreneurial Finance, The Art and Science of Growing Ventures' is required reading for anyone who wants to know or learn more about the financing of start-ups in Europe.

All too often, risk management is considered an administrative burden, consisting of ticking a series of boxes to comply with rules and regulations. Which is unfortunate, as you may miss out on a lot of opportunities as an organisation. In a recent publication in Business Horizons, Professor Regine Slagmulder and researcher Bart Devoldere argue in favour of a broader, more strategic approach to risk management. So what does strategic risk management entail and why is it so important, now more than ever?

The Belgian mergers and acquisitions market gradually seems to be reaching its peak. It is not just the number of transactions but also the selling prices which rose for the fifth year in a row in 2017. The highest valuations are found in the real estate sector followed by pharmaceuticals, technology and healthcare. The demand is greater than the supply and competition is increasing. In addition, more and more foreign players are showing an interest in Belgian companies. In view of the anticipated further growth in 2018, there is a danger of overheating. These are the main conclusions of the M&A Monitor, an annual survey which involves over 150 Belgian mergers and acquisitions experts and advisers.

Many family businesses aren't making full use of the potential of private equity. Is it because they fear what they don't know? Or are they worried that bringing a financial investor on board will be like inviting in a Trojan horse? A ‘meeting of minds’ between Professors Sophie Manigart and Miguel Meuleman, Dr. Jeroen Neckebrouck and Koen Dejonckheere, the CEO of investment company Gimv.

In contrast to a decreasing trend on the international mergers and acquisitions market in 2016, the Belgian M&A market has experienced further growth, particularly with regard to medium-sized and smaller deals. The demand exceeds the supply. Although transaction prices are rising, they are still acceptable. Anyone wishing to sell a profitable business these days can easily find a buyer. This can be explained by the fact that bank financing has become easier, as well as increased interest by foreign players in Belgian companies.

2015 and the beginning of 2016 were characterised by a pronounced increase in the number of transactions in the Belgian mergers and acquisitions market. Demand is greater than supply, stimulated by easy and cheap access to finance and greater availability of financial resources to investment companies. Furthermore, the persistently low interest rate environment means there is increased interest from family investors, wealthy individuals and foreign private equity funds in Belgian medium-size enterprises. It is therefore not surprising that the prices paid are increasing across all sectors and business sizes. These are the findings from a survey of 142 Belgian mergers and acquisitions experts into their experiences over the past year.