“Between 15% and 20% WSE / SMEs are zombie companies that will not survive the crisis.”
“In order to resume their activities upon repayment of a loan guaranteed by the state, these companies will have to demonstrate a turnover equivalent to 120% or 130% of the turnover in 2019 … We are wondering how this could happen!” Stefan notes. Rainier, Managing Director of RCA Consulting, who doesn’t believe in the euphoric recovery scenario. This specialist from the WSE and SME Treasury analyzes a particularly dangerous recovery equation for 15-20% of small and medium-sized enterprises. “Basically, there are two scenarios: companies that signed up for the EMP as a precautionary measure and have not touched it; and others who already used almost all of their BMPs because they had no choice and didn’t change anything. For them, the situation is dramatic, because the equation cannot be solved in its current form, in particular, due to digital transformation, I went through this and is gaining momentum. ” […] “The latest data for March 2021, in my opinion, indicates the opposite trend of the disappearance of companies, in particular, 80% of companies that are liquidated directly in the economic court. It smells hot … ”he warns. >> Read the full text of the article on the La tribune website.
The casino decides to go public for its subsidiary GreenYellow
In mid-April, Casino announced that it is exploring its strategic options with its subsidiaries Cdiscount and GreenYellow and that it has begun preparatory work to potentially raise additional capital for these assets, which are considered “strategic” in its growth plan. The casino then clarified that such fundraising could take the form of market transactions and be accompanied by a secondary offering of securities held by a distributor who intends to retain control of the two subsidiaries. GreenYellow’s IPO will be held at Euronext Paris. Applying to GreenYellow the rating factors applied in the renewable energy sector, which are more or less stringent depending on the quality of the various project portfolios, the value of the Casino subsidiary company will be between 900 million and 1.8 billion euros. The casino owns 73% of GreenYellow’s capital, and Tikehau’s asset manager and state-owned investment bank Bpifrance invested € 150 million in 2018 to acquire 24%. >> Read the full article on the Agefi website
Chinese companies raise record amounts on Wall Street
Funds raised on Wall Street by Chinese companies have reached record levels since the beginning of the year. Eleven billion dollars is a record amount of funds raised since the beginning of the year by Chinese companies on Wall Street through IPOs or convertible bonds. The interest of Chinese companies in the American market is surprising. Sino-American tensions are far from abating. And while they risk being blacklisted if they aren’t transparent enough about their accounts, that doesn’t stop Chinese companies from raising funds in the United States. Because a Wall Street listing always offers Chinese groups access to a deeper market that is better covered by financial analysts. In addition, it may take time to enact a delisting law. Therefore, Chinese companies are reluctant to waste years of growth as their country’s economy is recovering well from the coronavirus pandemic. >> Read the full article on the Les Echos website
Cryptocurrencies are now considered a safe haven for some companies
Perceived as a curiosity rather than a tool to fuel illegal trading, Bitcoin is now present in the treasuries of some companies. According to Bitcointreasuryreserve.com, 26 listed companies, mostly in the United States, are directly exposed to the queen of the cryptocurrency. In France, so far, no listed company has reported this type of investment. According to Florence Saliba, general secretary of the French Association of Corporate Treasurers, French companies have no interest in this issue: “They do not convert their cash into a currency that is more profitable than the euro, so there is no question of investing in bitcoins.” They don’t fight that much, says Romain Sagi, Coinhouse’s chief marketing officer. The platform has demonstrated “significant growth in business adoption”, reaching 30% of the volume of cryptocurrency purchases. “In February and March, we created an average of 50 corporate accounts, inherited holding companies, as well as dental offices, industrialists or logisticians who would like to invest,” says Romain Saghi. These are companies that have a stable cash flow and have been looking for a long time. urgent investments – from three to four years and from 50,000 to several million euros ”. >> The full article can be found on the Le Monde website.
Accounting Director: What if you became a CFO?
While traditionally management oversight or mergers and acquisitions are the preferred routes of access to the CFO position, accounting profiles can also be applied for. Even if recruiters still make little use of the latter, they have skills that are perfect for this type of function. According to stakeholders, CFOs who are proficient in accounting will even have an edge over other candidates. “The technical foundations of accounting are often difficult to integrate and can take time to fully grasp,” notes Elodie Tilmant, CFO of Total Direct Energie. Conversely, other finance functions such as treasury and credit management can be easier to learn on the job by interacting with teams. “>> Read the full article on Option Finance