PARMANTIER & CIE.’s Post

We Believe in German Mittelstand The German Mittelstand is the heart of our economy and a driving force for innovation and stability. To understand the German Mittelstand, one must look at INDUS Holding AG. Why Are We So Confident in INDUS’ Strategy? Point 1: INDUS has no holdings in the automotive supply industry. This sector in Germany is currently under massive pressure and will remain so in the future. The era of China as a major market for Germany is over. Moreover, an electric motor has only one-tenth of the components compared to a combustion engine. Point 2: INDUS is not involved in the steel and stainless steel processing industry. Its activities are limited to the production of abrasive materials, which is highly profitable. Take a closer look at the company—our research update can be a helpful resource. This is a stock to buy and hold.

AUSTRIAN CIRA PUBLISHED OUR LATEST FY2023 MARKET ANALYSIS We are very grateful to the Austrian investor relations society CIRA for publishing our latest FY2023 market commentary “Finding the Crystal Ball for Economic Recovery?”.  This was exactly a week after we went live with the official release on our corporate website and is hopefully of help to all those still preparing their FY2023 results release over the next few weeks. https://lnkd.in/dBFVJVez With Austrian inflation being among the highest in Europe and exceptional union power leading to excessive wage demands in recent months, a number of ATX companies released not only profit warnings in recent weeks (AT&S, voestalpine, Verbund) but also structural cost reduction programmes (Pierer Mobility, Palfinger) and a more subdued outlook (Agrana, OMV).  While financing costs have gone up in the current rate environment, others had to announce capital increases as they had either engaged in massive investment programmes before the interest rate pivot (Lenzing, AT&S) or had to proactively address working capital requirements (Rosenbauer). With the collapse of the Signa empire causing reputational damage for other corporates in Austria and elsewhere, it is not only interesting to follow recent changes at Supervisory Board level of Austrian companies (STRABAG), but what various financial institutions had to say about their exposure to the business adventures of Rene Benko.  In stark contrast to the conclusion the likes of Julius Baer have come to in recent days, Austrian banks have so far largely avoided to discuss their involvement, often hiding behind the legal claim that they can’t discuss “individual cases” (Bawag, RBI). Whereas Austria has not necessarily been exposed yet to the type of massive disruption through militant strikes neighbouring Germany had witnessed in recent months, it is interesting to hear senior executives’ estimates of annual wage inflation, ranging from anything between 8% (Bawag) to 10% (Palfinger).  In turn, another common number quoted is that of a 10% reduction of FTEs in Austrian factories (Zumtobel, Pierer Mobility, voestalpine), which senior executives often bring in direct connection with the increasing loss of industrial competitiveness (Stefan Pierer, CEO of Pierer Mobility, at the FY2023 preliminary results analyst call on 29 January 2024). For a copy of our original publication on 5 February 2024, see: https://lnkd.in/d8ZPjw-Y

👉  As a venture investor, I'm convinced we have reason to look optimistically into the future: Germany by no means lacks innovation potential. On the contrary, there are revolutionary technologies made in Germany, that require necessary growth capital to scale. Thank you to Handelsblatt for the opportunity to outline my proposal on how to activate this capital.   My suggestion offers a triple win: • It's a win for Germany: No state money is needed. The state will make significant profits from it, leveraging its high creditworthiness to make investments much more attractive to institutional investors, and multiplying the investment volume in one fell swoop. • It's a win for the insurance industry, which seeks investment opportunities with little or no equity requirements according to solvency AND better returns than government bonds. (Specifically, the state could provide a default guarantee for a largely default-proof portfolio of growth funds.) • It's a win for the overall economy because we'll unlock the desperately needed growth capital in dimension, which will easily double or triple the available capital in the short term. In summary: No further state debt would be made, investors such as the insurance industry would gain access to an attractive asset class, and the economy would get the necessary investment in growth companies. Read details in the article and reach out to me with your thoughts: 

𝗠𝗼𝘀𝘁 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝟮𝟬𝟮𝟰 This year, the SZ Institut is releasing a ranking of the most crisis-resistant companies. The analysis, conducted by Creditreform Gruppe, focuses on companies based in Germany and is based on balance sheet data from 2020 to 2022, as well as current economic information. Only firms with individual financial statements were included, while micro-enterprises and those exhibiting poor order volumes or unreliable payment practices were excluded. The analysis highlights companies that demonstrate strengths in diversification, innovation, and solid financial structures. From an initial pool of 5,460 companies, 304 ultimately met the stringent criteria for extraordinary crisis resilience. We are proud to announce that Prätorius GmbH has achieved 217th place, placing us in the top 4%. This recognition is not only significant for us but also serves as an important message to our clients. You can count on us - with confidence. More information below: https://lnkd.in/e3Uz4Tn4

In a recent interview with Welt am Sonntag, Cornelius Welp and I discussed challenges and opportunities that Germany is facing as an industrial hub. Growth in the world’s third largest economy is stagnating, several key industries are facing the end of a prolonged growth phase, most prominently in the automotive industry with the declining demand from China. Further structural headwinds include approaching retirement age of skilled workers, high energy costs, noticeable underinvestment in the country’s infrastructure over the past decade, and an increase in bureaucracy which is burdening entrepreneurial activity. However, that doesn't mean we have to resign ourselves to our fate. Germany continues to possess a robust and influential industrial sector. Companies can remain highly competitive in many areas in the future – for instance, at the intersection of industrial production and digital transformation, opportunities are emerging in areas such as medical technology, advanced materials, and green technologies. To boost Germany’s competitiveness, we need strategic investments into infrastructure, education, and security. In addition, strengthening capital markets through regulatory reforms, tax harmonization, and incentives to attract top financial talent are essential to position Germany as a leading destination for global expertise. Since 1990, Germany has been a strategic market for Goldman Sachs, and it remains one. We have a longstanding leading position in investment banking and securities trading, with growing strength in asset and wealth management. We continue to relentlessly support our clients, contributing to a successful economic turnaround. https://lnkd.in/ezabeewU

German Dax corporations have invested a record 75 billion euros in R&D in 2023, despite economic recession and lower profits. These investments, which are 7% higher than the previous year, are aimed at fostering innovation and maintaining Germany's competitive edge. The emphasis on R&D is crucial for the future success of German industry and global competitiveness of its economy. Let's hope this investment leads to significant breakthroughs and advancements in the future. #Germany #ResearchAndDevelopment #Innovation #CompetitiveEdge

🚀 Exciting News from "Wir, die Wirtschaft." 📊 The findings from this lighthouse project initiated by Sensor Advice are now available! The initiative's mastermind, Heike Scholten, has shared key insights in NZZ am Sonntag, highlighting a crucial trend: “There is no anti-business sentiment. Instead, there is a growing concern that cherished 'Swiss values' are at risk and material disparities are widening." Heike Scholten furthermore emphasizes the importance for businesses to take these concerns seriously, rather than creating a perceived divide between the economy and society. This perspective is vital for fostering a positive business environment. The report offers many more valuable insights, so stay tuned for more updates! #SwissEconomy #WirDieWirtschaft https://lnkd.in/eNGx4xig

https://lnkd.in/eZ2qbt73 🚨 **Is Germany's Economic Resilience Being Overstated?** 🚨 While a recent [Handelsblatt article](https://lnkd.in/evW2Kqbi) defends Germany's position as a robust economic hub, recent data tells a more nuanced story. Here’s what you need to know: 1. Wave of Insolvencies: Four historic German companies, including Wolff Hoch- und Ingenieurbau and Bodeta, filed for insolvency within a single day, driven by soaring energy costs and inflation [[❞]](https://lnkd.in/evWDyeeP. 2. Relocations Galore: Deloitte reports that two-thirds of German companies have partially relocated operations abroad due to high energy prices. This trend is especially prominent in the mechanical engineering and automotive sector [[❞]](https://lnkd.in/eVZCKrWN. 3. EV Industry Hit Hard: Electric vehicle manufacturer e.Go filed for insolvency again, citing unfavorable market conditions and high capital costs. This marks a significant setback for the German EV sector [[❞]](https://lnkd.in/eujJGsBY. 4. Retail Struggles: The decoration retailer Depot also filed for insolvency, signaling ongoing restructuring challenges [[❞]](https://lnkd.in/ek5-DCrG. Despite the optimism presented in the Handelsblatt and Bundesbank, these developments highlight serious challenges facing the German economy. The pressures of high energy costs, inflation, and an uncertain global market are driving many firms to rethink their strategies. 👉 **What’s your take? Are these indicators of a broader trend or isolated incidents? Let’s discuss in the comments!** #Economy #Germany #Business #Insolvency #Relocation #EnergyCrisis #Inflation #LinkedInNews

According to a study by the Halle Institute for Economic Research (IWH), the number of company bankruptcies in Germany skyrocketed in October: 48% more than a year earlier - and also the highest October figure in 20 years(!). The figures are also 66% higher than the average October figure for the years 2016 to 2019, i.e. before the Pandemic.

🚨 Facing a company crisis? Join us at Schulthess Forum 2024 to gain expert insights on managing restructuring, bankruptcy, and financial stability in times of crisis. 🌟 Event: Navigating Restructuring and Bankruptcy 📅 Date: December 5, 2024 ⏰ Time: 9:00 AM - 5:00 PM 📍 Location: Zurich, Switzerland 🎓 Organizer: Schulthess Forum What You’ll Gain: ✅ Expert insights on crisis management and restructuring ✅ Critical case studies, including the Credit Suisse downfall and startup financing hurdles ✅ Interdisciplinary knowledge on tax, legal, and insolvency solutions ✅ Key topics: early detection, financial stability, subordination agreements, tax strategies, and political gaps in bankruptcy ✅ Networking opportunities with professionals from law, finance, and business sectors 🔗 Register Now: https://lnkd.in/gCtiQm4T Speakers, Dr. iur. Daniel Hunkeler, Lukas Bopp, Reto Brunner, Alain Girard, Marjolaine Jakob, Raphael Kissling, Franco Lorandi, Dr. Regine Sauter, Dario Silberschmidt, Kevin T., Michael Tobler, Georg Johann Wohl 💡 Stay updated on all startup events in Switzerland! Check out our calendar for the full list of startup events and programs: https://lnkd.in/gdPfyuDF 🌱 Who are we? We are Swiss Startup Gurus, dedicated to helping startups, trainers, and coaches stay informed on all the latest events and programs in Switzerland. 📧 Join our newsletter for weekly updates on all startup events and opportunities: https://lnkd.in/g8UPdKye #CrisisManagement #Restructuring #BankruptcyLaw #InsolvencySolutions #StartupFinancing #CorporateCrisis #FinancialStability #TaxStrategies #SubordinationAgreements #NetworkingOpportunities #SchulthessForum #CorporateLaw #BusinessRestructuring #LegalInsights #CrisisLeadership #StartupLaw #StartupGrowth #StartupChallenges