M&A strategies for specialty-chemical corporates | Page 10

Spec . -chem . corporates show greatest share of divestments to PEs

In terms of M & A dynamics , specialty-chemical corporates divested their assets more often to other corporates ( 51 %) and to private equity ( 54 %) compared with investments in the respective groups while using start-up / venture capital to move into new areas .
FLOW OF M & A DEALS IN THE SPECIALTY-CHEMICALS INDUSTRY COMMENTS SHARE OF DEALS (%)
Investment by … in …
49 %
46 %
CORPORATES
PRIVATE EQUITY
Strategic Rationale | Deal Frequency & Deal Volume | Strategic Groups
51 %
54 % to …
Divestment by … I
II
CORPORATES
Specialty-chemical corporates divest assets slightly more often to other corporates ( 51 %) compared with making investments in other corporates ( 49 %).
PRIVATE EQUITY
Specialty-chemical corporates divest assets more often to PE firms ( 54 %) compared with making investments in other PE firms ( 46 %).
NOT EXHAUSTIVE
~ 42 %
~ 20 %
CORPORATES
100 %
VENTURE CAPITAL
0 %
CORPORATES
III
VENTURE CAPITAL
Only investments by specialty chemicals in VC-backed companies ( 100 %) were observed , no divestments to VC-backed companies .
~ 3 %
100 %
START-UP
0 %
IV
START-UP
Only investments by specialty-chemical corporates in start-ups ( 100 %) were observed , no divestments to start-ups .
~ 4 %
70 %
PRIVATE
30 %
V
PRIVATE
Specialty-chemical corporates invest more often in private companies ( 70 %) compared with divestments to private companies ( 30 %).
~ 31 %
Sources : Company information , press releases , goetzpartners analysis
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