WEBVTT 00:00:00.333 --> 00:00:02.752 Benjamin, so lovely to see you here. 00:00:02.752 --> 00:00:05.672 I want to talk to you about something that is 00:00:05.672 --> 00:00:10.677 as prominent as AI right now in Davos: M&A. What's your take? 00:00:10.677 --> 00:00:12.846 So super happy to be with you as well, Vaishali. 00:00:12.846 --> 00:00:15.306 So look, I would say that the market is overall on 00:00:15.306 --> 00:00:16.433 the positive trajectory. 00:00:17.017 --> 00:00:19.936 So first, it started to grow again in '24 on the 00:00:19.936 --> 00:00:21.312 back of a very low '23. 00:00:21.938 --> 00:00:24.941 And the momentum that we see today is rather good, 00:00:24.941 --> 00:00:28.445 driven by much stronger fundamentals on the M&A market. 00:00:29.070 --> 00:00:32.449 So as we speak, the level of activity that we see is an 00:00:32.449 --> 00:00:35.368 ongoing process. Exit preparations is very high. 00:00:35.869 --> 00:00:39.247 And the general feeling is about optimism or cautious optimism. 00:00:39.330 --> 00:00:40.874 It depends a bit on the country. 00:00:41.332 --> 00:00:43.960 We just publish an M& A sentiment index, 00:00:43.960 --> 00:00:47.922 and we see a high level of confidence from North American players, 00:00:47.922 --> 00:00:49.215 a bit lower in Europe. 00:00:49.257 --> 00:00:52.510 But overall, I would say that we are on a positive 00:00:52.510 --> 00:00:56.097 momentum. And in that, tech is taking the lion's share, 00:00:56.264 --> 00:00:59.934 Vaishali. It has grown fast last year in value, 00:00:59.934 --> 00:01:04.647 M&A did in value. And I would say that digitization, AI, 00:01:04.647 --> 00:01:07.609 GenAI, green transformation, we are the main driver of that. 00:01:07.817 --> 00:01:12.947 So a positive trajectory. And Vaishali, one question that I have on tech M& 00:01:12.947 --> 00:01:17.368 A beyond what I just said, what is driving that fundamentally for you? 00:01:17.744 --> 00:01:21.122 First of all, I think there is adjusted expectations on 00:01:21.122 --> 00:01:22.874 valuations versus say in '22. 00:01:22.874 --> 00:01:25.335 And I think that is a clear reset. 00:01:25.794 --> 00:01:31.216 I think companies are seeing this as an opportunity to really acquire 00:01:31.216 --> 00:01:36.012 capabilities or to really double down on growth in key areas. 00:01:36.012 --> 00:01:38.389 And this is really a way to turbocharge it 00:01:38.765 --> 00:01:44.062 and despite the geopolitical uncertainty. And I would say the last thing that I see 00:01:44.062 --> 00:01:45.688 here is "platformization." 00:01:45.688 --> 00:01:47.440 I think this trend is going to continue. 00:01:47.440 --> 00:01:53.238 And so, you know, the desire to consolidate will keep growing. 00:01:53.238 --> 00:01:57.242 And of course, another trend, which is the private equity side does 00:01:57.242 --> 00:01:59.285 want to see some liquidity as well. 00:01:59.285 --> 00:02:01.788 So I guess that's also fueling some of that. 00:02:01.788 --> 00:02:03.081 That's exactly the point. 00:02:03.081 --> 00:02:07.627 In fact, extending holding period, and mismatch of expectations for 00:02:07.627 --> 00:02:12.465 valuation between sell side and buy side, have been the major challenges 00:02:12.465 --> 00:02:15.218 experienced by the GPs in the past years. 00:02:15.677 --> 00:02:19.681 So now the good news is that we start to see a better match. 00:02:20.140 --> 00:02:23.768 And furthermore, GPs have worked extensively to really try 00:02:23.768 --> 00:02:27.105 to, let's say, generate operational value creation on 00:02:27.105 --> 00:02:30.483 plenty of topics, as they started with cost takeout of 00:02:30.483 --> 00:02:33.069 transformation to fund new growth avenues, 00:02:33.444 --> 00:02:37.740 and now there is a general feeling that more assets are ready for the investment. 00:02:38.241 --> 00:02:43.663 And one thing that I wonder—so on the tech business and particularly on the 00:02:43.663 --> 00:02:48.126 corporate M&A side, what is your view on how do companies 00:02:48.126 --> 00:02:50.336 ensure successful integrations? 00:02:50.503 --> 00:02:52.172 Acquiring is only the first step. 00:02:52.255 --> 00:02:57.177 But even that I think requires a systematic and a proactive approach. 00:02:57.552 --> 00:03:01.931 Too often I find if you're just reacting versus really stepping back and seeing 00:03:01.931 --> 00:03:06.186 what is the strategic agenda and what would be the best fit and really working 00:03:06.186 --> 00:03:08.646 towards that—that I think is the first step. 00:03:08.897 --> 00:03:13.318 And then of course, integration. I mean, the normal stuff we talk about—robust 00:03:13.318 --> 00:03:16.112 planning, taking a transformation lens not just a 00:03:16.112 --> 00:03:19.115 synergy lens, and really thinking about how the asset 00:03:19.115 --> 00:03:21.826 will fundamentally change long-term trajectory— 00:03:21.826 --> 00:03:23.203 these are all key points. 00:03:23.203 --> 00:03:28.249 And I think the ones that really pay attention to this together with culture 00:03:28.249 --> 00:03:33.963 and talent—which in tech, as you know, is pretty mobile—I think makes a real difference. 00:03:33.963 --> 00:03:38.718 So, well, I share your cautious optimism, or shall I say optimism, 00:03:38.718 --> 00:03:41.095 as we see how 2025 will shape up. 00:03:41.429 --> 00:03:43.348 Thank you very much, Vaishali. It was a pleasure. 00:03:43.640 --> 00:03:44.224 Same here.