IFBC Interview - Stefan Grossmann strengthens the M&A team

Stefan Grossmann started his career with a focus on Corporate Finance and M&A at a Big Four firm. Following his successful career at a major bank and an impressive track record in investment banking, Stefan Grossmann is the ideal addition to IFBC. Read the IFBC interview to find out more about Stefan Grossmann.

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Why do you get up in the morning?
I want to contribute my knowledge, skills and experience on a daily basis so that the right decisions are made and added value is created for everyone involved.

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What’s your assessment of the M&A market?
A prolonged period of uncertainty, particularly due to geopolitical tensions, inflation and the interest rate environment, has led to a decline in the number of M&A transactions and a lower cumulative deal value over the past two years. The first half of 2024 was mixed. Compared to H1 2023, a higher number of megadeals and a higher transaction volume were observed. However, the number of transactions was down compared to the first half of 2023. There were also significant regional differences: the decline in the number of transactions was less pronounced in Europe than in the USA. M&A activities were also highly concentrated in certain sectors, particularly technology and energy in H1 2024.

I am cautiously optimistic about the outlook for the second half of 2024 and 2025. With the stabilization of inflation and the announced interest rate cut in the USA, the general situation should continue to ease and confidence in the markets should increase. Technology trends and diminishing opportunities for organic growth will further increase the importance of M&A, which in turn will continue to drive a recovery in M&A activity. Many private-equity-owned companies are also in the process of preparing for a resale. At the same time, private equity firms have a lot of uninvested funds, which, assuming a return of confidence in the economy, will further increase deal activity. As various transactions in Switzerland have shown in recent months, these trends also create attractive opportunities for strategic investors.

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What challenges do Swiss industrial companies face?
Swiss industrial companies are characterized by a very high level of competitiveness and are in many cases strongly export oriented. A high level of innovation, a stable political framework conditions, global market access, international links, good infrastructure and a well-trained workforce help to maintain this position. However, the Swiss industrials sector has been facing various challenges for some time now. These include economic uncertainty, inflation, geopolitical tensions including rising protectionism, supply chain bottlenecks, a shortage of skilled workers and high wage and energy costs. Added to this is the continuous strengthening of the Swiss Franc. An increasing risk of cyberattacks, particularly on companies with key technologies, poses an additional challenge. However, as many of these issues are not just temporary, we note that many companies have taken or are considering appropriate measures. These include diversifying supply chains or setting up local production facilities abroad. The stabilization of prices for certain input factors such as electricity, should also have a positive impact on companies.

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How do IFBC’s clients benefit from your knowledge?
Over the past 12 years, I have advised a large number of companies on M&A transactions and related matters. These include complex public and transformative mergers and acquisitions in the double-digit billion range, but also smaller succession solutions or bolt-on acquisitions, for example. I have also been involved in several IPOs and played a leading role in many equity and debt capital market transactions. This included a lively exchange with board members and C-level executives of listed and non-listed companies on strategic issues. IFBC’s clients benefit from this very broad and comprehensive experience, coupled with my expertise in Corporate Finance.

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What do you do in your leisure time?
In summer you can find me jogging, trail running or on the road bike. In winter I strap on two skis under my feet for ski touring, winter mountaineering or cross-country skiing. Travelling abroad, good food and occasional concerts are also a must.

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