Transactions: The chemical industry

Our services at a glance

A noticeable transition with regard to environmental and climate protection – in combination with the Green Deal, in particular – has presented the industrial landscape in Europe with a huge transformation task. For the chemical industry, this has created a legal framework through which both politics and society can also expect a measurable reduction in the environmental impact of the chemicals used, in addition to a lowering in CO2 levels attributable to chemical production.

While the pandemic initially put many deal-related activities abruptly on hold, there are now signs of a recovery beginning to establish itself on the capital markets and a resumption of transactions, developments that are also favoured by persistently low interest rate levels. In this context, traditional business disciplines that, historically speaking, have been characterised by a high degree of operational interconnectedness and complexity – in terms of their supply chains and production – are increasingly being selected as the starting point for portfolio adjustments.                                                                                                             

It is to be expected that, in addition to traditional M&A strategies, regulatory instruments – such as the EU regulation on sustainability-related disclosure requirements in the financial services sector (SFDR) – as well as uncertainties regarding its long-term interpretation, will create a need for action in the development of corporate portfolios. Moderate growth rates in the Eurozone as well as increasing geo-political uncertainty will provide additional M&A impetus and, in certain cases, a further need for restructuring.

The current deal-specific key topics in the chemical industry include:

• Assessing the future viability of business models and the potential “remaining life” of products and technologies.
• Preparation and spin-off (carve-out) of future non-core business
• Preparation and formation of joint ventures to form partnerships that pursue the continued development and shared use of technology platforms
• Acquisition and integration of technology expertise in growth segments such as materials- and chemical recycling, as well as chemical and recycling logistics
• Valuing IP and related development programmes as opposed to traditional asset-based business models
• Assessment of investment propositions in the context of venture capital
• Proactive restructuring and adjustment of cost structures and footprint

Every transaction has its own peculiarities. We, therefore, also lend you our support by finding a solution approach tailored just to you. As a partner at your side, we not only provide a strategic view of trends and long-term developments, but also consistently draw on our experience from previous transactions in the chemical and process industries. We bring our expertise in IT, finance, tax and HR to the table, in combination with virtual work formats and digitalised project processes – never losing sight of the goal of sustainably increasing the value of your company.