Europe’s fragmented insolvency laws and banking cultures have made turnaround investments particularly challenging, even as the economy continues to falter.
Even in the UK, which has the most investor-friendly turnaround market in Europe, the low level of insolvencies, a result of creditors clinging on to “zombie” businesses, has limited the number of opportunities for turnaround specialists to make investments.
According to the latest Business Insolvency Index from Experian, 1,650 businesses became insolvent in June 2012, compared to 1,841 in May 2012 and 1,783 in June 2011.
That might be about to change. Reforms in Germany as well as Spain are likely to open the market up to turnaround investors. The opportunities in the European market are the subject of a panel session comprising experts from Sun European Partners, Rutland Partners and Perceva Capital at this year’s European Mid-Market conference.
The event will be held at the Hilton Arc de Triomphe in Paris on 19 October.