Copernicus goes international
M&A International, grouping firms from more than 30 countries, encourages cooperation between members and specializes in deals of less than zł.580 million ($150 million). Paweł Gieryński, chief executive of Copernicus Group, says that membership has already benefited the firm, as demonstrated by the case of its new client, a U.S. manufacturing company that was on the hunt for acquisitions across Europe. The U.S. firm was working with M&A International members, which convinced their client that this country should be added to its shopping list.
"We could never have approached the client as a small consultancy from a small, out-of-the-way country," Gieryński says.
Gieryński expects more such deals in the near future, pointing to the existence of several sectors that are currently unconsolidated and, as a result, inefficient. They could be cheaply acquired once regulations limiting opportunities for consolidation are relaxed following accession. The radio market is one such example, while car dealerships or mobile handset dealers could also be up for consolidation in the near future. Investment bankers across the world have regained a spring in their step as mergers and acquisitions are back in fashion and Copernicus believes this country will be no exception.
Maciej Szałaj, chief executive at Copernicus Finance Polska, agrees that there has been a slowdown in privatization, an important source of firms for acquisition, which has had an effect on limiting the opportunities for the company. He adds, however, that privatization never was a prime area of activity due to a high risk of arbitrariness. The State Treasury could always cancel a tender, leaving our client disappointed, he says.
Szałaj adds that the company is hoping to capture the market of firms that were founded ten years ago and which entrepreneurs might be looking to sell. Such companies could provide a wealth of acquisition opportunities and Copernicus is not alone in expecting a wave of such sales.
"Our German colleagues often complain that entrepreneurs there are extremely unwilling to give up control of their companies," says Jacek Siwicki, managing partner at Enterprise Investors, the region's largest private-equity fund, "I shouldn't think that will be a problem here." This will provide opportunities for both venture capitalists and investment bankers.
Copernicus has closed 70 transactions in its seven years of existence and is currently working on eight more. That, Gieryński says, is the maximum number of deals it could handle at any given time.
"We could never have approached the client as a small consultancy from a small, out-of-the-way country," Gieryński says.
Gieryński expects more such deals in the near future, pointing to the existence of several sectors that are currently unconsolidated and, as a result, inefficient. They could be cheaply acquired once regulations limiting opportunities for consolidation are relaxed following accession. The radio market is one such example, while car dealerships or mobile handset dealers could also be up for consolidation in the near future. Investment bankers across the world have regained a spring in their step as mergers and acquisitions are back in fashion and Copernicus believes this country will be no exception.
Maciej Szałaj, chief executive at Copernicus Finance Polska, agrees that there has been a slowdown in privatization, an important source of firms for acquisition, which has had an effect on limiting the opportunities for the company. He adds, however, that privatization never was a prime area of activity due to a high risk of arbitrariness. The State Treasury could always cancel a tender, leaving our client disappointed, he says.
Szałaj adds that the company is hoping to capture the market of firms that were founded ten years ago and which entrepreneurs might be looking to sell. Such companies could provide a wealth of acquisition opportunities and Copernicus is not alone in expecting a wave of such sales.
"Our German colleagues often complain that entrepreneurs there are extremely unwilling to give up control of their companies," says Jacek Siwicki, managing partner at Enterprise Investors, the region's largest private-equity fund, "I shouldn't think that will be a problem here." This will provide opportunities for both venture capitalists and investment bankers.
Copernicus has closed 70 transactions in its seven years of existence and is currently working on eight more. That, Gieryński says, is the maximum number of deals it could handle at any given time.
