For both divestitures and acquisitions, the two main factors of M&A dynamism in the regions are the sector profile and the size of the companies.
The third explanatory factor for disposals is the self-financing rate, which is an indicator of the company’s ability to generate resources over a long period of time to ensure the company’s long-term survival.
On the buyer’s side, the cash flow rate expresses the ability to finance an acquisition.
Transaction history allows us to identify sectors of activity that are more attractive than others.
Similar to what was done to calculate the dynamism of the regions, an index of dynamism of the sectors of activity has been set up.
To measure the dynamism of the sectors of activity, we compared the proportion of disposals in each sector to the proportion of SMEs in that sector.
A ratio of 1 expresses strict proportionality between the number of divestitures in the sector of activity and the proportion of SMEs in that sector. A ratio greater than 1 indicates an over-activity in M&A.
Only sectors with more than 200 companies were selected.
The French map of business transfers in 2019: managers play a significant role in the takeover
of companies through LBOs (16% vs. about 8% for external buyers on average over the last 3 years).
These LBO transactions vary according to the categories of participants. Over the last 3 years, we can see :
- A decrease in MBOs (management buyouts) – 7%.
- An increase in OBOs (partial exit of the current manager with entry of manager(s))
- An increase in Spin Offs to managers +7% in H1 2019 vs +2% on average over the previous 3 years
Source : Extract from the In Extenso Finance & Transmission panorama
Link : https://finance.inextenso.fr/regions-transmission/









