Investment decisions are vital to a company and are shaping it’s future. We help business leaders to prepare for progress, enabling them to act in confidence when taking strategic decisions.
Europe, still, is a popular destination for investors. It’s wealth in terms of GDP/PPP is up to the highest standards and it’s popularity is illustrated by the level of Foreign Direct Investment (which, in PPP terms, is higher as compared to the one of the USA and only second to Asia (India & China & Asean) which has a larger population. In the eyes of the investor, the single biggest reasons for it’s popularity is the size of it’s market and the availability of real buying power, as illustrated by PPP/capita. Also, Europe is seen as a ‘politically stable’ region, where employees of high quality are available and where history has proven that Europeans are responsible for many technological breakthroughs. For globally acting, ambitious corporations, there is good reason to consider an investment in Europe.
Investments can take many shapes… In the early stages of the decision taking process, many aspects are unclear, but any investment will be about either a restructurization of existing operations, a new ‘greenfield investment’ or a ‘merger & acquisition’ investment. Each of them requires a profound analysis of investment requirements and an eventual M&A investment very much depends on the opportunities that are available on the market. Our company engages in the early stages of the evaluation process and provides advice on ‘the best way forward’. We provide confidence in the quality of the decision taking process. No stone will remain unturned….
FDI Investments – Year 2015
Objectivity. We want to provide objective advice and, hence, we abstain from providing any form of advice or service to organisations that promote countries or regions. All our customers are independent corporations. In this way, we do differentiate ourselves from many other advisors that serve corporations as well as ‘regional promoting offices’. Doing so, we believe, creates a conflict of interest that stands in the way of objective advisory. Objectivity is an important aspect of the quality that we wish to offer to our clients.
Quality. We have long-standing experience in guiding investors, we have access to information that is relevant for them; we use a sound professional business approach and we have connections to European authorities. Our office is located on walking distance from the European district in Brussels.
Languages. We are glad to offer services in many languages (english, chinese, french, german, dutch) enabling us to adapt to the cultural habits of our customers.
Mergers and Acquisitions are an important way to expand your business, globally representing an investment of 399 billion $ in the year 2014 from which 160 billion $ has been spent in the European Union. M&A provides instant availability of local assets, know-how and experience and this is a major asset when entering a new, unkown continent. But M&A is only viable when a suitable candidate can be found.
We carry out market studies to identify the best possible and available targets in a given sector, on the request of the client. Our company has developed a ‘communication protocol’ that allows potential buyer to connect and exchange information with candidate sellers & mergers, without the need to disclose identities of both parties in the early stages of analyses. In this way parties are more willing to exchange information and raised questions can get accurate and clear answers. Subsequently, and when both parties are still interested to continue interaction on the basis of received information and when they feel both ready and secure, identities can be disclosed, enabling to parties to continue discussions on a possible cooperation.
History has proven that some of such acquisition in Europe can develop from a small sized operation to leaders on a global scale in their marketsegment.
We have the experience to keep an eye on your needs
Often greenfield investments have the greatest impact on the local economy, but selection of the optimal location is no easy matter. Many selection criteria must be taken into account. They are customer- and project specific and their individual weight must be carefully established. Some are crucial, others less so. But most of them can be categorized in one of the three ‘core criteria groups’ referring to the following questions most business leaders asks themselves…
Which locations provides the resources and skills that are needed to conduct the new business ?
Which locations allows to operate at lowest costs ?
Which location provides the desired business environment, today and in the (long term) future ?
The term “Sources & Skills” is about the availability of employees with the requested competences and mindset, the preferred real-estate opportunities, high quality logistical infrastructure, modest distance to market, access to raw materials, availability of utilities, technological know-how and business experience…and many more criteria.
The term “Savings” is about favorable tax arrangements with authorities, modes employee costs, intracompany transfer price arrangements, a tax friendly organizational structure, availability of financial incentives, taxation on transfer of dividends, low logistical and R&D costs… cost of utilities….and many more.
The term “Stability” is about the long term health of the economy and the political system. It is about keeping access to the required resources at the lowest possible cost. We provide a report on “Stability” for each of the site opportunities. The criteria can be subdivided further.
The selection of criteria will be influenced by the type of investment. The setting-up of an HQ, a production facility, a logistical operation, a research facility, a sales & marketing center…. all have their specific requirements. We work closely together with our clients in order to define the most preferred set of criteria and to define their relative importance.
We use a large amount of historical data and mathematical models, with which results can be optimized in the shortest possible period.
Together with our international network we update the data on a constant basis in order to provide the most accurate information that is available today.
Energy usage and cost regularly plays an important role in an investment project. In such case the availability of it a reasonable cost, today but also in the long term future, can be an important issue.
Europe is moving into the direction of renewable energy and the European Commission has set clear goals for the future. The investments into new renewable energy in Europe are considerable and of variable nature. They are not harmoniously spread of the entire EU28 but few countries hold the largest share of European capacity within their borders.
We provide deep inside in the differences between European countries on availability of renewable energy sources, now and in the future. Companies may use renewable energy for different reasons, either to bolster an environmental profile in their customers minds, or to assure long term availability of energy resources, or to anticipate to expected rises in the price of a barrel of oil (despite its current low price) or for environmental reasons. For them, this criteria may carry a large weight.
Benchmarking of M&A opportunities in defined sector
Advice on the best strategic approach (M&A, Greenfield, scope)
Creation of the ‘preferred selection criteria set’
Screening of market opportunities
Benmarking available options
Engaging with authorities on business environment
Advice on ranking preferred conclusions
Engage in initial operational activities to prepare for the investment
Despite the removal of barriers between European countries, there still are substantial differences in labor costs among them. Although they tend to decrease with time, still it will take several other decades to wipe them away completely. We provide benchmark date between selected European countries for specific profiles and advice on it’s importance in the context of specific projects.
Connecting to EU-authorities
In the search for new investors, the many European countries have been creative in developing new incentives. It resulted in quite substantial differences among countries in legal conditions for investors. Our company engages is connecting with the authorities in order to identify the differences between the countries, to seek the best possible business environment for our customers and to explore the mindset of authorities concerning specific needs of a potential investor.
Our office is conveniently located on walking distance to the European Parlement, enabling us to develop a strong network of connections with representatives of the many countries.