Lear - Economic Consultancy’s Post

The big change in the competition debate? Great data. My speech at the Chifley Research Institute today contained fresh findings on domestic airline competition & mergers that fly under the radar. Read it here: https://lnkd.in/grxFke7f #competition #auspol #research

It's depressing to see the government reflectively reach for more regulations or market intervention as the solution to every problem. The unfortunate consequence of over regulation and excessive intervention is that it makes things more expensive, markets less competitive, and reduces productivity. Every regulation, code of conduct, or competition intervention adds costs to our economy, while reducing the efficiency of our market place. This makes every Australian poorer in the long run. In almost all cases, government attempts to 'do better' than a free and open market will fail. Hundreds of years of research has shown that price discovery through open markets is the best way to allocate scarce resources, and the less intervention in those markets, the more efficient they will be and the better off market participants will be (especially over longer time periods as small increases in annual growth can compound to very big advances over time). Trying to regulate our way to economic growth and lower prices is a doomed endeavour. #australianeconomy #australianbusiness #SME #ausbiz

The JSE's new classification system aims to attract fresh listings by streamlining requirements and making it easier for companies to list. HT Adriaan Kruger. This is a promising development for South Africa’s financial market! In reading this, I am reminded of the vibrancy of the JSE in the late 1980s, with the introduction of the Venture Capital Market (VCM) and Development Capital Market (DCM). These two markets alone attracted something like 200 listings if my memory is correct - creating a robust platform for emerging businesses to access capital and grow. This period demonstrated the potential of innovative market structures to stimulate entrepreneurship and drive economic growth. We need this desperately - I'd love to know your thoughts Andre Visser.

With global businesses and investors growing weary of China's anaemic economic rebound and geopolitical upheaval, Southeast Asia has continued to solidify its standing as a key regional destination for dealmaking. While 2023 didn't match the highs of 2022, either in terms of deal value ($129.8 billion versus $90.6 billion) or volume (1,278 versus 933) – last year dwarfed 2021 in terms of number of deals, and beat both 2019 and 2020 in terms of total amount. Jon Nair and Teng Sen Tan 陈镇绅 at Drew & Napier LLC point out that recession concerns and rising interest rates have resulted in a slow recovery in dealmaking as buyers exercise greater caution amid higher financing costs and market volatility. "We expect such trends to continue into the first quarter of 2024, as investors continue to scrutinise larger deals more carefully, and to consider lower-middle market deals which require less financing more attractive," add Nair and Tan. Find out more about Southeast Asia's M&A outlook from Sarah Wong: https://lnkd.in/gVMHeUDp

Some interesting thoughts and questions on the current state of the market from LA Business Journal. Below are a few questions from the article, so I would be interested to hear some answers/thoughts. 1) Which 2023 PE Trends do you anticipate will make the most impact in 2023? 2) Given the slowdown in exits & increased capital costs, what tactics do you see PE deploying with their live portfolio? 3) What are the emerging markets that have gained PE interest? #privateequity

Australian small- and medium-sized businesses are spending around 25% more on research and development than large firms, the biggest differential in decades, according to Jones. The assistant governor cited an emerging trend in the US that is also being seen in Australia where large firms are looking to “acquire and scale up the innovative ideas and practices first developed by more nimble, IP-rich smaller firms.” “If we do follow the pattern in the United States where many large firms are looking to innovate through acquisitions of dynamic SMEs rather than through in-house R&D, then it will place even further importance on our SME sector as an engine of innovation in Australia,” Jones added. #SME #R&D #turnaround #businessstrategy #operationstrategy

“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” – Warren Buffett Pricing power is a concept that encapsulates a company's ability to set prices for its products or services, without resistance. The factors that give the power of pricing to a company differentiate it from competitors. Understanding and assessing pricing power is crucial for investors and businesses alike. It directly affects a company’s ability to generate sustainable profits, maintain market share, and withstand competitive pressures. Last week I had the opportunity to attend Private Equity Insights event in Madrid alongside my colleagues Zeba Syed and Eduardo Kühnel. It was great to share with Limited and General Partners how relevant Pricing is to growing revenue and profits sustainably and how Pearson Ham Group | The Pricing Specialists can become your partner in this area. Since 2010, Private Equity Insights has become the leading networking platform for more than 500,000 investment professionals across Europe, Asia and America. #pricing

Glad to announce that the article "Participation in global value chains and M&A flows" coauthored with Wildmer Daniel Gregori is now available online for (free) download. This study investigates whether companies operating in industrial sectors characterized by a higher participation in global value chains (GVC) are more likely to be involved in cross-border mergers and acquisitions (M&A). We focus on firms acquired in the EU27 during the period 2008–2020 implementing a gravity model. Results show that cross-border investments are indeed associated with sectoral GVC participation, in particular the dependence on intermediates supplied by other countries (i.e., backward GVC participation) of the target country-sector, which is positively correlated with M&A flows. This evidence is confirmed when the acquired firm operates in high-tech sectors, and when the investor is based in OECD countries. In addition, we find that companies from non-OECD countries supplying inputs to other countries (i.e., higher forward GVC participation) are more likely to pursue a cross-border acquisition. https://lnkd.in/dJ4ed2s9

Every Time Market gives us opportunity. Are we aware of that? ---------Here's the Market Cycle------ There are 4 Stages in the Market Cycle, 1) Consolidation 2) Expansion 3) Retracement 4) Reversal CONSOLIADTION : Here the market moves up and down within certain range. EXPANSION : In this phase, Market breaks the consolidation zone either upside or downside. RETRACEMENT : It is a temporary movement against the trend, this is the phase where many people fall for the trap. REVERSAL : This the phase where all the potential market shifters like FII's, DII's and HNI's enter the market to build the trend. #trading #investing #tradingstrategy #investingstrategy #students #financecareer