M&A in the European Construction Industry
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Sigl-Grüb, C., Schiereck, D., Voigt, C. (Eds.) (2007). M&A in the European Construction Industry. Verlag Wissenschaft & Praxis. https://doi.org/10.3790/978-3-89644-319-9
Sigl-Grüb, Christof; Schiereck, Dirk and Voigt, Christian. M&A in the European Construction Industry. Verlag Wissenschaft & Praxis, 2007. Book. https://doi.org/10.3790/978-3-89644-319-9
Sigl-Grüb, C, Schiereck, D, Voigt, C (eds.) (2007): M&A in the European Construction Industry, Verlag Wissenschaft & Praxis, [online] https://doi.org/10.3790/978-3-89644-319-9
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M&A in the European Construction Industry
Editors: Sigl-Grüb, Christof | Schiereck, Dirk | Voigt, Christian
(2007)
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Abstract
This book is a compilation of articles which emerged from the »Project Course M&A - the European Construction Industry« in the summer term 2006, a course offered to 8th semester students at the European Business School (ebs).
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Preface | 3 | ||
| Contents | 5 | ||
| Part I: Performance and Valuation | 7 | ||
| Fabian Bramisch / Sebastian Markowsky: Chapter 1 Value Drivers of the European Construction Industry | 9 | ||
| Contents | 10 | ||
| 1 Introduction | 10 | ||
| 1.1 Problem and Purpose | 10 | ||
| 1.2 Structure of the Analysis | 11 | ||
| 2 Fundamentals and Basic Theories | 11 | ||
| 2.1 Value Driver | 11 | ||
| 2.2 Previous Literature Review | 12 | ||
| 3 Rational for WCM | 13 | ||
| 3.1 Relevance | 13 | ||
| 3.2 Components of WCM | 14 | ||
| 4 Empirical Analysis | 15 | ||
| 4.1 Research Questions and Hypotheses | 15 | ||
| 4.2 Procedure | 16 | ||
| 4.3 Selection of Sample and Data | 17 | ||
| 4.4 Description of the Analysed Figures | 17 | ||
| 4.5 Results | 17 | ||
| 4.6 Limitations of the Study | 21 | ||
| 5 Conclusion and Future Fields of Research | 21 | ||
| References | 23 | ||
| Appendix | 27 | ||
| Sonja Blankenburg / Astrid May: Chapter 2 Long-term Performance of Different Business Models in the European Construction Industry | 31 | ||
| Contents | 32 | ||
| 1 Introduction | 32 | ||
| 1.1 Problems and Objectives | 32 | ||
| 1.2 Course of Analysis | 33 | ||
| 2 Basic Concepts | 34 | ||
| 2.1 Construction Industry | 34 | ||
| 2.2 Business Models | 35 | ||
| 3 Performance Analysis | 36 | ||
| 3.1 Different Business Models | 36 | ||
| 3.2 Comparison of Models | 37 | ||
| 3.3 Geographic and Economic Differences | 40 | ||
| 3.4 Philipp Holzmann AG | 41 | ||
| 3.5 Possible Explanations | 42 | ||
| 4 Set of Opportunities | 47 | ||
| 4.1 Improvement | 47 | ||
| 4.2 Threats | 49 | ||
| 5 Conclusion and Outlook | 50 | ||
| References | 52 | ||
| Appendix | 56 | ||
| Christian Βöhm / Stephan Freud: Chapter 3 Multiples Valuation in the European Construction Industry | 65 | ||
| Contents | 66 | ||
| 1 Introduction | 66 | ||
| 2 Approach of the Study | 67 | ||
| 3 Theoretical Review | 67 | ||
| 4 Comparable Company Valuation | 70 | ||
| 4.1 Data Sample and Hypotheses | 70 | ||
| 4.2 Financial Value Driver Analysis | 70 | ||
| 4.3 Multiple Valuation | 73 | ||
| 5 Precedent Transactions Valuation | 75 | ||
| 5.1 Data Sample and Hypotheses | 75 | ||
| 5.2 Financial Value Driver Analysis | 75 | ||
| 5.3 Transaction Segmentation Analysis | 77 | ||
| 6 Concluding Remarks | 80 | ||
| References | 82 | ||
| Appendix | 83 | ||
| Part II: Economic Perspectives | 93 | ||
| Bhupinder S. Brar / Sylvain Fondeur: Chapter 4 The Economic Importance of European Construction Industry | 95 | ||
| Contents | 96 | ||
| 1 Introduction | 96 | ||
| 2 Market Analysis | 97 | ||
| 3 Market Segmentation | 98 | ||
| 3.1 Residential | 99 | ||
| 3.2 Non-Residential | 100 | ||
| 3.3 Civil-Engineering | 100 | ||
| 4 Market Forecast | 101 | ||
| 5 Competitive Environment | 101 | ||
| 6 Qualitative Overview | 102 | ||
| 6.1 Germany | 102 | ||
| 6.2 France | 103 | ||
| 6.3 Spain | 104 | ||
| 6.4 United Kingdom | 104 | ||
| 7 Impact Factors | 105 | ||
| 7.1 Economic Environment | 105 | ||
| 7.2 Commodity Prices | 106 | ||
| 7.3 Stability and Growth Pact | 106 | ||
| 7.4 Public Private Partnerships | 107 | ||
| 7.5 Environment Obligations | 107 | ||
| 7.6 Demographic Trends | 108 | ||
| 8 Conclusion | 108 | ||
| References | 109 | ||
| Appendix | 110 | ||
| Cowan Phan Siang Pu / Louise De Waal: Chapter 5 Macroeconomic Determinants of Long-term Performance in European Countries | 111 | ||
| Contents | 112 | ||
| 1 Introduction | 112 | ||
| 1.1 Aim of the Paper | 112 | ||
| 1.2 Course of the Analysis | 113 | ||
| 2 Links between GDP and Growth | 114 | ||
| 2.1 GDP | 114 | ||
| 2.2 Governmental Expenditure | 115 | ||
| 2.3 Domestic Expenditure | 116 | ||
| 2.4 Investment Expenditure | 119 | ||
| 2.5 Exchange Rates | 122 | ||
| 3 Conclusion | 123 | ||
| References | 126 | ||
| Appendix | 130 | ||
| Part III: Short Term Performance of M & A | 133 | ||
| Alexander S. Peters / Philipp Schäfer: Chapter 6 Event Study: M & A Announcement Effects on Bidders in the European Construction Industry | 135 | ||
| Contents | 136 | ||
| 1 Introduction | 136 | ||
| 1.1 Objective of the Study | 136 | ||
| 1.2 Course of the Study | 137 | ||
| 2 Theoretical Framework | 137 | ||
| 2.1 Review of Literature | 137 | ||
| 2.2 Derivation of Hypotheses | 139 | ||
| 3 Empirical Analysis | 141 | ||
| 3.1 Methodologies | 141 | ||
| 3.2 Data Sample | 144 | ||
| 3.3 Results | 146 | ||
| 4 Summary and Conclusion | 150 | ||
| References | 152 | ||
| Sebastian Becker / Franz Jaeger: Chapter 7 Event Study: M & A Announcement Effects on Targets in the European Construction Industry | 157 | ||
| Contents | 158 | ||
| 1 Introduction | 158 | ||
| 1.1 Objective of the Study | 158 | ||
| 1.2 Course of Analysis | 159 | ||
| 2 Literature | 159 | ||
| 2.1 Review of Literature | 159 | ||
| 2.2 Derivation of Hypotheses | 161 | ||
| 3 Event Study | 164 | ||
| 3.1 Methodology | 164 | ||
| 3.2 Data Selection and Sample Description | 166 | ||
| 3.3 Empirical Results | 166 | ||
| 4 Summary and Conclusion | 177 | ||
| References | 179 | ||
| Appendix | 184 | ||
| Florian Jope / Otto von Troschke: Chapter 8 Event Study: M & A Announcement Effects on Rivals in the European Construction Industry | 191 | ||
| Contents | 192 | ||
| 1 Introduction | 192 | ||
| 1.1 Motivation of the Study | 192 | ||
| 1.2 Course of Analysis | 193 | ||
| 1.3 Related Literature | 193 | ||
| 1.4 Theories on Competitive Effects | 194 | ||
| 2 Empirical Analysis | 196 | ||
| 2.1 Selection Procedure | 196 | ||
| 2.2 Individual Rival Set Selection | 197 | ||
| 2.3 Event Study Methodology | 198 | ||
| 2.4 Univariate Analysis & Results | 199 | ||
| 2.5 Multivariate Regression & Results | 206 | ||
| 3 Conclusion | 207 | ||
| References | 209 | ||
| Appendix | 211 | ||
| Christian Geßner / Martin Renze- Westendor: Chapter 9 Are M&A-Advisors Value Drivers in the European Construction Industry? | 217 | ||
| Contents | 218 | ||
| 1 Introduction | 218 | ||
| 2 Literature Review | 219 | ||
| 2.1 Theoretical Concepts | 219 | ||
| 2.2 Literature Review | 220 | ||
| 2.3 Research Hypotheses | 221 | ||
| 3 Empirical Evidence | 222 | ||
| 3.1 Data Sample | 222 | ||
| 3.2 Event Study Methodology | 223 | ||
| 3.3 Empirical Evidence | 226 | ||
| 4 Summary and Conclusion | 237 | ||
| References | 239 | ||
| Appendix | 242 | ||
| Part IV: Case Studies | 251 | ||
| Marie Kathrin Pleus / Anna Quitt: Chapter 10 Mergers and Acquisitions in the European Construction Industry: The Case of Hochtief and Turner | 253 | ||
| Contents | 254 | ||
| 1 Introduction and Course of the Study | 254 | ||
| 2 The Market Environment | 255 | ||
| 2.1 The European Construction Market | 255 | ||
| 2.2 The German Construction Market | 256 | ||
| 2.3 The US Construction Market | 257 | ||
| 3 Portrait two Protagonists | 258 | ||
| 3.1 Turner Construction Corporation | 259 | ||
| 3.2 Hochtief | 260 | ||
| 3.3 Strategic Rationale | 263 | ||
| 4 The Transaction | 265 | ||
| 4.1 Key Facts and Course of Transaction | 265 | ||
| 4.2 Multiple Analysis of the Transaction | 265 | ||
| 5 Market Reactions to the Acquisition | 266 | ||
| 5.1 Calculation of Abnormal Returns | 266 | ||
| 5.2 Market Reaction for Hochtief | 267 | ||
| 5.3 Market Reaction for Rivals | 268 | ||
| 6 Post-Merger Integration | 269 | ||
| 7 Final Evaluation of the Transaction | 270 | ||
| References | 272 | ||
| Appendix | 275 | ||
| Benjamin Krapf / Cornelius Voge: Chapter 11 Case Study: The Acquisition of Abigroup Ltd. by Bilfinger Berger AG | 279 | ||
| Contents | 280 | ||
| 1 Introduction | 280 | ||
| 2 Company Profiles | 281 | ||
| 2.1 The Buyer: Bilfinger Berger | 281 | ||
| 2.2 The Target: Abigroup | 282 | ||
| 2.3 Comparison: Facts and Figures | 283 | ||
| 3 The Deal | 283 | ||
| 3.1 Deal Structure and Course of Events | 283 | ||
| 3.2 Announcement Effects | 285 | ||
| 3.3 Multiple Analysis | 288 | ||
| 4 Rationale Behind the Deal | 290 | ||
| 5 Ex-post Evaluation | 290 | ||
| 5.1 Deal Valuation | 290 | ||
| 5.2 Future Outlook | 292 | ||
| 6 Conclusion | 292 | ||
| References | 294 | ||
| Appendix | 296 |