EU direct investments

Europe is the world's biggest market meanwhile. Within a bit more than a decade, the European Union could cover 710 mio. citizens. Through this, Europe will grow by number of countries besides the growth through growth rates.

Generic growth can't compete this time with the fast developing BRIC countries and the european reform processes are slow. But through the change of economic system in eastern europe the european union and their associated neighbours grew to 27 countries and round half a billion people (in 2007) while the south and eastern european countries develop fast.

Europe is now round 30% of the world's economy. It's politically stable and without essential conflicts. There is no real risk for the markets through conflicts. Reform processes will finally succeed, even if they take time. So, it's now the perfect time for direct investments in Europe. One will be ready for the market if it's time has come.

Acquisitions are an important major way for european direct investments. In Europe hundred thousands of SMEs often don't develop along real opportunities and many of them do not have a follower. Nevertheless, often brand names and product technology are valuable. Through this strategic investors do have great chances. A leveraged buy out is sometimes an option too.

Another option are non-performing loans. There's a structured market coming up meanwhile an so, strategic investors can act like a private equity firm when overtaking a company. Brand names and technology are assets. A crisis can be managed through outsourcing of production to the buyers home market plants with lower labour costs to open up margin and cash flow and asset potentials.

Last Updated: 16.06.2008