What type of companies and in what sectors is there appetite?

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Eleuterio Abad: Right now there is a great investment appetite; that is not focused exclusively on certain sectors. Essentially, what you are looking for is to invest in companies with solid businesses; that have demonstrated resilience and profitability during the pandemic. And, equally, they are capable of withstanding the tense situation of lack of raw materials. If these companies also have a solid growth capacity, this makes them an interesting target. The 'hottest' sectors However, we have detected certain sectors that have significant attractiveness for financial investors . Among them we find the agri-food sector; industrial sectors with added value and a controlled dependence on the cost of energy and certain services and technology.

Likewise, there continues to be investor appetite for traditional sectors. Like construction materials. – What assessments are we based on? Have they fallen a lot? For which operations are you willing to pay higher multiples? EA: The Phone Number Data current situation of the financial markets and the absence of investment alternatives make alternative investments such as venture capital very attractive. Consequently, the managers of this type of funds have great liquidity available. Additionally, industrial investors increasingly see inorganic growth via acquisitions as a faster way to grow and optimize results; taking advantage of synergies.
  


All this means that, despite the situation of uncertainty, at this time we do not see that company valuations are falling, quite the contrary. As Ximo commented before, we think that the moment is very interesting to consider a transaction. Because the valuations are very attractive. In terms of multiple, traditionally the acquisition of 100% of a company by an industrial investor has always been the way to maximize price. And, therefore, the multiple of the transaction. However, the particular situation we are experiencing now means that the difference in valuation achievable between this type of operation and any other is either very small or non-existent. Consequently, we are seeing that the structure of the operation is reducing its importance when it comes to aiming for a higher price. As long as the company is attractive and its business plan includes a solid capacity for profitable growth.