Heliad Equity Partners GmbH & Co. KGaA / Miscellaneous
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++ Representative survey by infas:
Majority of Germans polled believe that private equity investments make
companies more successful – positive effects for medium-sized businesses
expected
A recent survey revealed that the vast majority of Germans believe that
companies financed by private equity investments are more successful than
their competitors. Moreover, most Germans are convinced that private equity
investors enhance the competitive power of German medium-sized businesses
in the international marketplace. A risk perceived by many of the polled
individuals, however, is that companies may become dependent on the
investors. These are the results of a representative survey about private
equity investments among the German populace carries out by the infas
institute for market research for the listed Heliad Equity Partners. 1,004
German citizens aged 18 and above were polled on the issue. Approximately
two and a half years after the public debate about 'locusts', the survey
now provides the first comprehensive picture of the public opinion on this
issue.
58 percent of those polled assume private-equity financed companies to be
more successful than their competitors. Only 35 percent expressed the
opposite opinion. As many as 69 percent of all polled are convinced that
private equity investment increase the competitive power of German
medium-sized businesses in the international arena. Only 17 percent think
that the bottom line would consist of a negative impact of private equity
on German medium-sized businesses. On the issue of jobs, however, opinions
differ. While 34 percent of the polled Germans expect private equity
investments to add new jobs, a similarly large group of 36 percent believes
them to be a threat to job security. Approximately 25 percent don’t believe
either of these assumptions to be accurate.
Germans have a clear conception of the first measures taken after an
involvement of private equity investors: 70 percent speculate that the
first priorities on the agenda would be cost reductions. Asked what
behavior on the part of private equity investors they would consider ideal,
74 percent expressed the desire that the investors should actively support
the companies’ managements. 44 percent of the polled Germans currently
perceive a good chance for German companies to benefit from the experience
of private equity investors. A majority of even 55 percent consider the
contacts and business relationships of private investors as a success
potential, and 76 percent name the opportunity to invest with the finances
provided by private equity investors as one of the positive effects of
private equity investments.
On the other hand there are concerns about the possible danger of companies
becoming too dependent on the investors (63 percent), and that the
investors might try to influence the internal organization of the company
(52 percent).
At its first mention in the survey, the term 'private equity' was unknown
to most of those surveyed. Only 13 percent claim to be familiar with it.
Individuals were then given a comprehensive and unbiased explanation of the
term before the survey was continued. The familiarity with the term varies
noticeably with the income and educational level of those surveyed.
Individuals who are familiar with the term show a significantly more
positive attitude towards private equity investors.
Ralf Fiore, CEO of Heliad, the company that commissioned the survey, said:
'In our line of business it is important not to become isolated from public
opinion, but to have a clear and comprehensive image of it. This is what we
achieved with our infas survey. We discovered a very positive attitude to
this issue in the German populace, surprisingly so in light of the recent
political discussions. However, the survey also showed some results that
are less pleasing for our industry. While the vast majority of those polled
credit private equity investors with strengthening the competitive power of
German businesses, people also associate our measures predominantly with
cost cutting, layoffs, and stripping of assets. However, the majority of
Germans wants an investment style that is based on cooperation and
consultation on the part of the private equity investors. Private equity
partners like Heliad have been following this approach, and have done so
successfully.
Alexander Mitsch, CFO, Heliad, adds: 'We, the whole industry, have yet to
communicate the chances offered by private equity investments. After all,
the survey clearly shows that the more Germans know about private equity,
the more positive their attitude. The results of the infas survey confirm
international studies in the same area. These, too, suggest that companies
financed with the support of private equity investments are considerably
more successful.'
The complete survey results and details are available upon request. Please
contact heliad.
++ About Heliad
Heliad is a publicly listed investment company that focuses on companies in
predominantly German-speaking countries that are undergoing a strong growth
phase. Heliad invests into established, owner-run business models with
sales of between 10 and 100 million Euro.
With this strategy Heliad has occupied a highly attractive niche between
Venture Capital and large Buyouts. With around 3,750 employees, the current
total of 14 companies within Heliad’s portfolio generate combined sales of
more than Euro 370 million.
Further information about the company can be found at
www.heliad.de.
Contact:
Heliad Equity Partners GmbH & Co. KGaA
Alexander Mitsch
Chief Financial Officer
Tel.: +49 (0) 69 71 91 59 65 28
E-Mail: alexander.mitsch@heliad.de
16.10.2007 Financial News transmitted by DGAP
Language: English
Issuer: Heliad Equity Partners GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt am Main
Deutschland
Phone: +49 (0)69 719 15 965 0
Fax: +49(0)69 719 15 965 11
E-mail: info@heliad.de
Internet: www.heliad.de
ISIN: DE0006047293
WKN: 604729
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Stuttgart
End of News DGAP News-Service