In addition to digitalization, network-based providers of professional services in particular are important drivers of developments in the service sector. The M&A partnership Globalscope enables IFBC to support its clients in the worldwide search for suitable target companies and interested buyers in order to support service companies in developing their business model accordingly.
In the logistics sector the continuous digitization poses major challenges especially for small and medium-sized companies fueling the persisting consolidation trend in the industry. Increasing start-up investments indicate a fundamental disruption in the last mile delivery services through delivery drones, autonomous vehicles, and crowdsourced delivery services.
In the Professional Services area, growing customer needs for a fast, high-quality service delivery are increasing the importance of on demand workforce and flexible working models that can be adapted to the fluctuating customer demand. In addition, professional service firms continue to acquire smaller consulting firms to gain additional know how in order to expand their offering with highly specialized consulting services especially in the fields of digitization and analytics.
In the industrial services segment, offerings linking physical products and digital services are emerging. The data gathered through increasing interconnected sensors in production lines (Industrial Internet of Things) are giving rise to new service offerings. For example, predictive maintenance can be used to plan maintenance work in a targeted manner and thus increase the efficiency of production plants.
In August 2019, DSV completed the acquisition of the Swiss logistics company Panalpina. Panalpina, which is active in air and ocean freight as well as contract logistics, employs more than 14,500 people globally. The acquisition resulted in one of the world’s largest logistics companies with around 60,000 employees.
Logistics start-up Luckabox offers a platform to connect logistics service providers to companies demanding logistics services. Luckabox realized a seven-figure pre-series A financing round in September 2020. The successful financing round illustrates the increasing importance of innovative delivery services, especially on the last mile.
In January 2020, the leading Swiss digital agency Hinderling Volkart announced that it will become part of the Dutch company Dept which is present in more than 13 countries worldwide. Hinderling Volkart is a multiple award-winning Swiss digital agency. Its approximately 60 employees work at three locations in Zurich, Bern and Basel for clients such as SwissRe, Edelweiss, Swiss and Switzerland Tourism.
IFBC was engaged by Kuoni Global Travel Services (Switzerland) AG to determine the WACC for the Spanish group company Europamundo Vacations as a basis for the goodwill impairment test according to IAS 36. The WACC was derived using capital market data and based on a peer group analysis.
Kuoni Global Travel Services (Switzerland) AG is an internationally active travel company and has been part of the Japanese JTB Group since 2017. Since 2020, the company has been operating under the brand Kuoni Tumlare.
IFBC was mandate by Valora to review the model for the annual goodwill impairment tests as well as the applied cost of capital. Based on relevant accounting regulations and current best practice, recommendations for the further development of the impairment model were made and implemented.
The Valora Group is a leading food convenience provider with approximately 2’700 sales outlets at high frequency locations in Switzerland, Germany, Austria, Luxembourg and the Netherlands. Furthermore, the company is an international producer of pretzel bakery products and listed on the SIX Swiss Exchange.
On 29 January 2021, OFFIX Holding AG (which belongs to the Swiss PEG Papeteristen Einkaufsgenossenschaft) and the Swiss Office World Holding AG (which belongs to the international MTH Retail Group Holding GmbH), announced that they intend to bundle their Swiss business in the new Office World Group AG.
IFBC acted as Financial Advisor to OFFIX Holding AG for this important transaction. IFBC particularly supported its client with valuation and transaction price considerations and in price negotiations.
Today OFFIX Holding AG is one of the leading players in the area of paper and stationery products in Switzerland. It has an annual turnover of around CHF 240mn and a total headcount of 235 employees.
On 27 January 2020, the leading Swiss digital agency Hinderling Volkart AG ("Hinderling Volkart") announced that it will become part of the Dutch company Dept Holding B.V. ("Dept"). Hinderling Volkart from Zurich as well as the two subsidiaries Hinderling Volkart Bern and HV Italic from Basel are joining the internationally expanding Dept.
IFBC acted as exclusive M&A advisor to Hinderling Volkart during the entire transaction. Among others, IFBC performed a structured international buyer approach, developed the transaction structure, organized the due diligence and led the negotiations.
Hinderling Volkart is a multiple award-winning Swiss digital agency. Its approximately 60 employees work at three locations in Zurich, Bern and Basel for clients such as SwissRe, Edelweiss, Swiss and Switzerland Tourism.
The following graphs analyse the services industry over the past five years. The graphs show the development of the average semi-annual transaction multiples as well as a comparison between the trading multiples of listed companies in individual sub-sectors and per region as of the end of June 2020. The analysis is based on the Bloomberg database. In terms of size, a distinction is made between companies/transactions with a market capitalization of below (low-mid market) or above (large companies) USD 150 million.