The medium-sized Swiss Internet service provider iWay prevails over 12 well-known competitors in an independent quality comparison conducted by the Swiss Institute for Quality Testing SIQT. iWay had already won the race in 2020.

In the current SIQT study "Internet Provider 2022", independent experts analyzed the rates, range of services, transparency and convenience. Secondly, tests of iWay's customer service were carried out by qualified testers. iWay achieved the best overall score of 5.3 points. This corresponds to a target achievement of 85.3 percent of the relevant criteria. In concrete terms, this means that iWay customers do not have to wait in line at the support hotline and always have a direct contact person on the phone immediately. In addition, unlike most other providers, iWay always automatically passes on price reductions to existing customers.

"The fact that we have been independently voted the best Internet provider for the second time in this independent study by the renowned quality institute SIQT is a great confirmation for our team of our efforts to provide customers with transparent and fair offers and outstanding service," says iWay CEO Markus Vetterli. "Fair offers and uncomplicated and fast support clearly pay off in terms of customer satisfaction. We are particularly pleased that this has now also been confirmed once again by an independent party."

Source: iWay

Shortly after the start of the armed conflict in Ukraine, the Federal Council decided to grant S protection status to the refugees. This decision was widely supported by the business community, including the Swiss Employers' Association (SAV). In the meantime, around 60,000 Ukraine refugees have been registered. Slightly more than half, about 33,000, are of working age. According to the State Secretariat for Migration, about 10 percent of those of working age are now in employment. At a media conference on August 18, 2022, the Swiss Employers Association welcomed the fact that companies are making an important contribution to the integration of people from Ukraine in Switzerland. Gainful employment enables a structured daily life, financial independence and participation in social life during their stay in Switzerland. In order to learn more about the interest, but also the challenges and needs of Swiss companies regarding the employment of Ukrainian refugees, the SAV commissioned the research institute Sotomo to conduct a representative company survey.

More than half of companies want to hire Ukraine refugees

The survey shows that 56 percent of the companies are generally interested in employing them and almost every tenth company has already employed people with protection status S. Companies that have hired Ukrainian refugees are satisfied with their performance. According to the survey, by employing people from Ukraine, companies are demonstrating their intention to make a contribution to solidarity. The quality of the Ukrainian workforce and their high motivation are also cited as important factors.

At the same time, there are factors that make employment more difficult. Inadequate language skills are cited particularly frequently in this context - they are a major reason for non-employment, especially in the case of catering companies and companies in the healthcare and social services sectors. These are also the sectors that generally see the most potential in hiring Ukrainian refugees. 62 percent of companies also call for greater commitment and increased efforts on the part of the federal government and cantons with regard to language course offerings.

Extension of the right of residence desired

The right of residence of persons with protection status S is currently limited to one year - the residence permit of the first persons will therefore already expire in about half a year. This lack of clarity about how to proceed with protection status S is unsettling for many companies. Thus, 81 percent of the companies surveyed that have already hired would welcome an extension of the right of residence for the duration of the employment. SAV President Valentin Vogt emphasized the relevance of planning security at the media conference: "A perspective regarding the stay of Ukrainian refugees in Switzerland would encourage companies to further promote or even intensify integration by means of internships and apprenticeships."

In part, however, the respondents also state that at present they simply lack applications from people from Ukraine. They therefore call for a more active role of the REOs in the registration and placement of persons with protection status S. Judith Bellaiche, Director of Swico, from the ICT sector also reported that there are difficulties in recruitment. According to her, it is extremely difficult for companies to get in touch with refugees directly, and this circumstance is made even more difficult by decentralized and small-scale responsibilities. In some cases, the refugees also had a lack of knowledge of the Swiss labor market, which made it difficult for them to position themselves in the market. "In this respect, support from the regional employment centers (RAV) would be very welcome. Thanks to their structures and knowledge of the labor market, they could offer assistance in finding a job," says Bellaiche.

Labor shortage: a drop in the bucket

And are Ukrainian refugees able to dampen the shortage of skilled workers somewhat? It seems that the immigration of refugees from Ukraine is only a drop in the bucket. However, according to a good one in two of the companies surveyed, people from Ukraine with S protection status can at least partially counteract the labor shortage. Companies that have had or still have a need for workers since March of this year are more likely to see persons with protection status S as a way to alleviate the current labor shortage in their respective industries. On the other hand, companies in the industrial sector see somewhat less potential for counteracting the labor shortage than do companies in the hospitality and healthcare sectors, for example.

Source: Swiss Employers' Association

The Thurgau Economic Forum (WFT) has been one of the most important and largest business and political conferences in Thurgau for 25 years. With the new orientation after the anniversary event last year, the Thurgauer Kantonalbank could be won as a new main sponsor. And now the patronage has been filled again: The Association of Employers Central Thurgau has decided to support the WFT, which will be held in Weinfelden, as the business association of the district.

Employers Mittelthurgau: Important business representation in Thurgau

The association Arbeitgeber Mittelthurgau represents the economy in the center of the canton Thurgau and connects 144 companies of the district Weinfelden with about 7200 employees. The association focuses on improving the economic framework conditions in the region and the canton. It also expresses itself wherever the freedom of entrepreneurial action is affected. Arbeitgeber Mittelthurgau is also an important contact for the public sector, namely the municipal authorities. The association was formed in 2014 from the merger of the Bischofszell Trade and Industry Association and the Mittelthurgau Employers' Association.

Same goals as the WFT

The protection of interests, in particular the improvement of the economic and political framework conditions in the canton, orientation on current topics in politics and business, promotion of the exchange of experience and network cultivation are - among other goals - in the foreground of Arbeitgeber Mittelthurgau. These are also the goals of the WFT, at which competent speakers always give lectures on current economic-political topics.

WFT with Federal Councillor Maurer and Hans-Werner Sinn

The 26th Thurgau Economic Forum will be attended by a member of the Swiss Federal Council: Ueli Maurer, Minister of Finance, is the first Federal Councilor to appear at the WFT. With the professors Hans-Werner Sinn, Monika Bütler and the RAUSCH CEO, Sandra Banholzer, the WFT has been able to engage further competent and prominent speakers. They will provide valuable impulses to the participants on the topic of "Finance & Global Economy in the Context of Crises".

Applications and further information: www.wft.ch

In the spring of 1942, Silac started producing plastic buttons in an old schoolhouse in Oberiberg. Only two years after its foundation, the company needed more space and moved to Euthal. After the end of the war, the company expanded its range of products with hydraulic presses, automatic presses and high-performance thermoplastic injection molding machines. From then on, it was possible to produce thermoset and thermoplastic products that were in demand, such as cans, lids, screw caps, bottle caps and furniture handles. Silac thus quickly developed into an important regional employer.

From a producer of plastic buttons to a high-tech company

The company recognized the potential of well-trained employees early on and was eager to recruit young people from the very beginning. As early as 1960, the first mechanic apprentices could be taken on in the company. This was an important and logical step for the permanent quality assurance. Apprentice training is still an important principle in the company philosophy today. A lot of time and energy is invested in an exemplary apprentice training. Today, Silac trains not only prospective production mechanics, but also plastics technologists, polymechanics and business people.

Under the second generation, the family business developed into a progressive company with an excellent reputation. Herbert Birchler deliberately placed the emphasis on state-of-the-art technology. He continuously invested in machinery to keep up with the competition. The push for automation was necessary to guarantee the company's continued existence and thus the preservation of jobs in the long term. At the end of the 1980s, Silac dared to take the step forward and started planning a complete new building. In 1990, the move to the new building at the current headquarters in Euthal took place.

Expansion of the company building in 2020

In 1998, Peter Birchler was drawn to the family business. The then 27-year-old managing director skilfully set the course and developed Silac into a modern high-tech company that continues to consciously focus on Swiss quality despite international price pressure. Peter Birchler was and is convinced that Silac scores with its customers through speed, flexibility and quality. With the focus on always guaranteeing the highest quality to the customer, Silac, in contrast to many other injection molding companies, still operates its own tool shop today. Here, specially trained polymechanics build injection molds true to plan and with precision. Like his predecessors, Peter Birchler knows that people are behind Silac's success. A good next generation of professionals and motivated, highly qualified employees form the foundation of long-term success.

Another highlight in the history of Silac took place in 2020 with the opening of the new production hall. With a new total of 3,000 square meters of production space, the company is ready for the future. The new hall is equipped with state-of-the-art, fully automated production facilities. High-quality plastic solutions are manufactured here under maximum hygiene standards for the food industry. In addition, storage capacities have been expanded so that Silac can continue to meet increasing customer needs in the future.

Silac connects two plastic worlds

Silac combines the world of packaging and the world of technology in what it describes as a unique way. Stable and high-quality molds, which are created in the company's own tool shop, enable large production volumes for sophisticated packaging solutions. One of the top products is the Flex-Spring hinge for flap closures with an above-average load capacity at the largest opening angle. The company is a leader in the production of sophisticated plastic closures. Even complex parts for the electrical industry or machine and apparatus construction are produced quickly and in small or large volumes according to customer requirements thanks to state-of-the-art technology and many years of know-how. Using innovative 2-component technology, Silac can also process solid and soft materials in a single step. The result is tighter packaging, new design options, shorter production times and lower manufacturing costs. Another plus point for the company is the wide range of printing options for the plastic parts, which give customers an individual look.

Equipped for the future

The company is also committed to the responsible use of materials. Especially as a family-owned company, Silac is aware of its responsibility towards the next generation. It is committed to a closed, environmentally friendly plastics cycle in its own operations and recycles its own plastic waste. Furthermore, Silac has the following certifications that reinforce the company's high quality standards: FSSC 22000 (version 5.1), ISO 9001:2015 and ISO 14001:2015.

"The recent FSSC 22000 certification, the continuous expansion of the technology and printing range, and the innovative use of bio-based plastics are further stages in the 80-year success story of Silac AG. Moreover, with Luca and Olivier Birchler, the fourth generation is already working in the company. I am very happy that with them we can continue the family tradition and continue to offer our customers outstanding plastics solutions in the future," adds Managing Director Peter Birchler.

On Saturday, September 10, 2022, Silac invites interested parties to an open house. From 10 a.m. to 4 p.m., visitors can take a look behind the scenes on a tour and immerse themselves in the fascinating world of plastics. Guests will also be treated to culinary delights on this day. www.silac.ch

Showing up late to the office, working deliberately slowly or handing in substandard work: the opportunities for employees to take revenge on their employer for a breach of trust and unkept promises are many and varied. In fact, a large proportion of employees take the opportunity to exact revenge on their employer from time to time. A new study by WHU - Otto Beisheim School of Management, the University of Liverpool, Singapore Management University and the Indian Institute of Management Ahmedabad has shown that companies can counteract this behavior with the help of mindfulness training.

When employees take revenge

An astonishing 90 percent of employees in the USA admit to taking revenge on their employer from time to time. The authors of the study "Mindfulness attenuates both emotional and behavioral reactions following psychological contract breach: A two-stage moderated mediation model" assume that this magnitude can also be transferred to European and German-speaking countries. The triggers are considered to be breaches of trust on the part of the employer in the form of unfulfilled promises, which unfortunately occur again and again in modern everyday working life. They manifest themselves, for example, when an employer withholds from employees promised professional development opportunities (for example, interesting tasks, promotions), work arrangements (for example, flexitime or home office) or compensation (for example, salary increases or bonuses). This leads to hostile behavior on the part of employees toward their company, which causes billions of euros in damage to companies every year. Employees want to "get even" with the company and show less commitment, spend significantly more time on their tasks or no longer follow instructions from superiors. As the study shows, however, this effect can be prevented or at least greatly mitigated: The solution is mindfulness.

Mindfulness prevents revenge

About 22 percent of all employers in the United States already offer mindfulness training to their employees - with very good results and a decline in hostile behavior after a breach of trust. Mindfulness is a form of concentration that involves consciously noticing thoughts and feelings without judging them. Through the method, people learn to control themselves better and react less emotionally. Two mindfulness processes are critical to responding more flexibly at both the emotional and behavioral levels: the decoupling of lived experiences from the self and less automaticity in reactions. By decoupling, the self is less involved in one's own perceptions and the person is able to mentally distance themselves from events and experiences. Mindful people can therefore deal with negative experiences in a more neutral way and debunk their emotional impact. As a result, they react more consciously and less impulsively. In this way, they are able to look at an unfulfilled promise from different perspectives, consider mitigating factors, and be open to alternatives for resolving the conflict. Mindfulness training is therefore equally useful for employees and companies and helps to avert high economic damage from companies.

Source: www.whu.edu

Switzerland saw a historic increase in SME corporate transactions in the first half of 2022. A total of 133 transactions were executed - clearly the highest half-year figure since the Deloitte MidCap M&A Study was first published in 2013, which is conducted every six months. Swiss-directed M&A activity increased by a quarter to a new high of 59 transactions. And the number of all cross-border activities (99 transactions) also corresponds to the highest value since the studies began. Already a year ago a peak in SME corporate transactions was reported.

There are several reasons for the brisk M&A activity: "Lower stock market valuations for acquisition candidates, financing costs that remain favorable in Switzerland, and the strong Swiss franc have made the acquisition of foreign companies attractive and fueled transaction fever among Swiss SMEs," explains Anthony West, Partner and Head of Corporate Finance Switzerland at Deloitte. Purely domestic transactions, on the other hand, declined again slightly, by just under 11 percent.

Buyers of Swiss SMEs come mainly from Europe

In Switzerland, a total of 93 SMEs were purchased in the first half of the year. The majority of foreign buyers were European (61%) and North American (29%) companies. The U.S. and Germany have long been the most important countries investing in Switzerland; in terms of numbers, 34 percent of investments come from neighboring countries. Deloitte M&A expert Anthony West sees the robust Swiss economy and the strong specialization of Swiss SMEs as the main reasons for this development.

At the same time, Swiss SMEs most frequently acquired businesses in Europe (85%). The remaining transactions mainly involve North American companies. Around 40 percent of acquisitions involve companies in neighboring countries, with Germany alone accounting for 27 percent of transactions. Many Swiss SMEs prefer foreign companies in the industrial sector. Also still very popular are companies in the healthcare and TMT sectors, both of which have benefited from the COVID 19 crisis.

M&A activity continues despite headwinds

Global M&A activity has already slowed sharply this year due to rampant inflation and rising interest rates, higher financing costs, the Ukraine war and growing fears of a recession. Globally, the great optimism has therefore faded, as Anthony West makes clear.

For Switzerland, he assesses the general outlook as more positive across the board, albeit less optimistic than at the beginning of the year. Since then, he said, there have been many new risks surrounding the Ukraine war and its manifold effects on the global economy. "Uncertainty is poison for corporate transactions: Stock market slumps, supply chain bottlenecks and the rise in costs for raw materials, primary goods and services are weighing on many companies - worldwide even more than in Switzerland. These are all reasons for lower global M&A activity and also a somewhat weaker appetite among Swiss SMEs for acquisitions in the second half of the year," explains Anthony West.

Lower company valuations as a favorable prerequisite for SME company transactions

Now that many central banks have raised interest rates in the fight against inflation, financing acquisitions has become fundamentally more expensive and riskier. However, the rising cost of capital has also caused many company valuations to fall: these are exciting takeover opportunities both for investment funds with large cash reserves and for financially strong companies with a strategic focus. The decline in the value of many currencies such as the euro or the British pound against the Swiss franc makes foreign companies additionally attractive for Swiss companies.

Source and further information: Deloitte

According to the learning and forgetting curve of psychologist and pioneer of cognitive-psychological research Hermann Ebbinghaus, we can recall only 34 percent of what we have learned after just 24 hours if learning is not actively continued. After only 30 days, we have forgotten up to 90 percent of what we have learned if we do not try to reinforce what we have learned and remember the key elements. There are scientifically proven methods that can be used to store knowledge from training and continuing education in the long term and that can be combined with today's learning opportunities. Five of these methods for better retaining training content and recalling what has been learned are compiled here.

Learn more sustainably

• Distributed Practice and Spaced Repetition - In this learning strategy to combat the forgetting curve, exercises are divided into several short sessions over a longer period of time. People learn and remember content more effectively when it is studied in multiple sessions rather than in exercises within a very short period of time - a phenomenon called the spacing effect. This finding by Ebbinghaus was also reiterated by scientists such as Alan Baddeley and Longman in the 1970s and 1980s.
• Information retrieval (Retrieval Practice) and practice exercises. - So-called retrieval exercises are a learning technique that involves repeatedly recalling learned material without seeing it in front of you. An effective and common method of studying for practice exercises is flashcards. The Leitner system is a widely used method of using flashcards that was popularized in the 1970s by German science journalist Sebastian Leitner. It is a simple implementation of the principle of spatial repetition, in which flashcards are repeatedly queried at specific intervals.
• Interleaved practice or nested learning - Today's learners often need to build multiple skills simultaneously. With Interleaved Practice, a learner switches between multiple topics in the same session. Interleaving has been shown to be more effective than larger blocks of practice on a single topic and leads to better long-term recall of what is learned as well as. The ability to transfer learned knowledge also improves. This method forces the brain to constantly ask questions because each practice attempt is different from the last. Cognitive psychologists believe that the interlocking of learning topics improves the brain's ability to distinguish between concepts and strengthens memory associations.
• Teach A Friend (Feynman Method) - The Feynman Method mental model aims to convey information using concise information and simple language. It is a simple approach to self-directed learning based on distilling one's existing knowledge by imparting it to someone else. Nobel Prize-winning physicist Richard Feynman bases his approach on the assumption that if you can't describe an idea in simple terms, you don't really understand it. The ability to use this technique to explain a subject can prove and solidify one's understanding.
• Reflection or self-declaration - In education, the concept of reflection dates back to the work of John Dewey (1933). He defined it as "active, persistent, and careful reflection on any belief or supposed form of knowledge in light of the reasons that support it and the further conclusion to which it tends." In the scholarly article, "Learning by Thinking: How Reflection Aids Performance," researchers from HEC Paris, Harvard Business School and the University of North Carolina found that reflecting immediately after a lesson increased individuals' performance the next time they returned to the material.

Application in everyday work

Many of these methods can be easily integrated into everyday work. Active reflection or the trick of explaining what has been learned to a colleague offer additional benefits for the learners' environment. Some also retain content better if they actually write it down by hand on index cards, but there are also apps that can be used to implement this method digitally.

Modern learning platforms also support the implementation of some of the methods. Small learning units and microlearning make distributed and nested practice easily possible. Ideally, digital learning tools also have so-called learning reinforcement functions, with which course participants and users of the learning content are automatically prompted to deepen the knowledge, test it again in an exercise, or repeat it in a different format. Thanks to mobile access to modern learning solutions, this reinforcement of knowledge and memory can be easily implemented anytime and anywhere in everyday life.

"In summary, the cornerstone of learning reinforcement is based on: retrieving, remembering, reflecting and refining (Retrieve, Recall, Reflect, Refine) what has been learned. We have also built our Percipio Learning Reinforcement capabilities on this principle, where we bundle all these learning techniques," explains Andreas Rothkamp, VP DACH at Skillsoft, an education technology company that produces software and content for learning management systems. "Skills and competencies are the basis for the success and growth of companies today. Therefore, effective training programs that help employees not only build necessary qualifications and learn skills, but also internalize and apply the knowledge in the long term are key."

Source: Skillsoft

One speaks of a dilemma when a person or organization wants or needs to achieve several, sometimes contradictory goals at the same time. A typical dilemma is the much-discussed "compatibility of family and career". As with all dilemmas, this conflict of goals can only be resolved to a limited extent - no matter how much support is provided by the employer or the state. After all, if you want to earn a lot of money, you generally have to work a lot, too.

When dead ends threaten...

Dilemmas such as those described above also exist in companies. A typical management dilemma is: if the company is to remain one of the top providers in the market in the future, it must invest. However, if a lot of money is spent on this, then liquidity and earnings fall and debt increases. The consequence: the company becomes more dependent on capital providers, and this can endanger its independence and even its existence. In times of crisis or market upheaval, when a paradigm shift takes place in the corporate environment, dilemmas become more acute, because then the usual ways of dealing with such conflicting goals often end in dead ends.

Dilemmas can only be managed

A characteristic feature of dilemmas is that they cannot be solved, but only managed. It goes without saying that a company must take precautions to ensure that it will still be successful in five or ten years' time. So it has to invest and continue to develop. At the same time, however, it must ensure that it can still carry out its day-to-day business and remain liquid. Productivity and marketability must not suffer. The real art lies in finding the right balance. When managing dilemmas, the following "steps" can be distinguished:

• Step 1: Recognize the dilemma. Even this is often difficult for those involved in the company. The top decision-makers, because they are not involved enough in the day-to-day business, and the managers, because they primarily focus on their own (task) area in their work.
• Step 2: Do not negate the dilemma. Pragmatic doers tend to negate dilemmas. For example, they often interpret indications of (potential) problems as an expression of a lack of decisiveness and drive. Their actions are correspondingly actionistic. This often even bears "fruit", for example in the form of a short-term increase in sales or profits. However, it usually takes its toll at some point that the "competing" goals were neglected for a longer period of time. For example, in the form that the company's products are no longer marketable. Or top performers leave the company.
• Step 3: Point out the dilemma. Most of the goals of companies influence each other reciprocally. Accordingly, it is important for managing dilemmas to analyze which goals the company has, how they are interrelated, to what extent they influence each other and what impact they have on short-, medium- and long-term success. It can be helpful to draw up a strategy map in which the goals are listed and their interrelationships are mapped.
• Step 4: Agree on rules for dealing with dilemmas. Suppose an employee realizes that it is difficult for me to reconcile family and career and that I am suffering as a result? Then he should talk to his supervisor and say to him: "Boss, I have a 'conflict of objectives'. Let's talk about how we can ...." He should also sit down with his partner and say to him, for example, "We both want to have a career and still have time for ourselves and our family. Let's talk about how we ....". At the end of the conversation, arrangements can be made and rules agreed on for dealing with the conflict of goals.
  It is similar in companies. Here, too, someone has to take the initiative and say emphatically: "We have a conflict of objectives and need to agree on a strategy for how to...." Otherwise, there is a danger that the processing of the conflict of objectives will be put on the back burner until, figuratively speaking, the hut is on fire and the "problem" has already become a crisis or even a catastrophe. This must be avoided.
• Step 5: Don't be a stickler for the rules. Companies operate in a dynamic environment. That's why those responsible must regularly check: Are the formulated rules still suitable for managing dilemmas or do we need new ones? This applies in particular when unforeseen events such as the collapse of strategically important supply chains or a massive increase in raw material and energy prices threaten the company's ability to act and its liquidity. Then decision-makers must ask themselves: Should we suspend our current rules for dealing with the dilemmas, at least temporarily, in order to remain able to act and operate in the market?

VUKA world requires sharpened dilemma awareness

Companies can only respond flexibly to special challenges and changing conditions if there is a shared awareness of dilemmas, at least among the management team. Companies must communicate this to their employees and especially to their managers. In addition, their management personnel should learn to manage many partially contradictory goals in parallel and to rebalance them as needed.

To the author: Dr. Georg Kraus is the owner of the management consulting firm Dr. Kraus & Partner, Bruchsal. He is a lecturer at the University of Karlsruhe, the IAE in Aix-en-provence, the St.Gallen Business School and the Technical University of Clausthal, as well as the author of several change and project management manuals.

Masters of their trade can be recognized by the tools they use: Particularly in the wake of the digital transformation, it is essential to equip employees in purchasing with the necessary skills and the right tools. The selection of good "purchasing tools" is now large - there are currently over 100 tools that enable procurement tasks to be processed and solved more efficiently and effectively, i.e. holistically. This results in a total of around three million combinatorial variants of tools. This shows - the mere availability of a toolbox is by no means sufficient. Only the right use of the appropriate tool can sustainably increase organizational efficiency.

The book is not a theoretical treatise, but developed from practice for practice. This was done as part of an Innosuisse project at the University of Applied Sciences Northwestern Switzerland - with the support of procure.ch and purchasing experts from local companies. The selection of tools follows a simple principle of equivalence of the degree of complexity of the situation and the tool - the choice of tools is therefore not arbitrary. The book is basically an instruction manual. And with its digital integration into the company, it becomes a learning expert system for effective and efficient purchasing.

The book:
"Purchasing Toolbox - Using Supplier Management Tools Effectively".
ISBN 978-3-033-08731-6, 488 pages
The book can be ordered now: www.procure.ch/werkzeugkoffer-einkauf

To the author:
Herbert Ruile (60) is Managing Director of Logistikum Switzerland, an extra-university education and innovation center for purchasing, logistics and SCM. He completed technical training as a mechanical engineer with a doctorate from the Technical University of Munich and further business training with an MBA at EIPM, Archamps (F). Important professional stations were Höchst, ABB, Alstom and the FHNW.

The record global M&A hunt continues despite high inflation and the threat of recession, according to the half-year report on the global M&A market by consulting firm Bain & Company. There are signs that transaction volumes this year could reach $4.7 trillion, the second-highest level since the turn of the century, the report said. Only in the exceptional year of 2021 was it higher, at $5.9 trillion. The report not only analyzes recent developments in the M&A market. It also shows how company buyers can use acquisitions to gain a competitive edge even in turbulent times.

M&A market: solid balance sheets and high cash flow inflows boost willingness to buy

"In recent years, low interest rates have further fueled the M&A boom," explains Bain partner Dr. Tobias Umbeck. "With the central banks' turnaround on interest rates, first in the U.S. and now in Europe, the era of cheap money is coming to an end." This would currently affect financial investors more than strategic buyers, as in many cases the latter would have solid balance sheets and high cash flow inflows. Therefore, they would continue to have access to debt capital. "Leading companies will continue to make acquisitions in the future, because this will provide them with urgently needed skills," says Umbeck.

The focus here is on technology companies. Their share of the total transaction volume of strategic buyers has recently increased significantly. Bain partner and market observer Tobias Hürlimann notes: "The Corona pandemic has once again accelerated digitization in many industries. As companies are often unable to build up the necessary capacities quickly enough, they are buying in suitable specialists."

EBITDA multiple rises significantly

Russia's attack on Ukraine, with its consequences for the economy and inflation, has done little to change this. It is true that the transaction volume of strategic buyers fell from USD 970 billion in the fourth quarter of 2021 to USD 599 billion in the first three months of 2022. But the comparable prior-year level is likely to have been exceeded as early as the second quarter - especially as valuations are picking up significantly. While the average EBITDA multiple worldwide was still 11.0 in the first quarter of 2022, it rose to 16.7 in the spring. In 2021, this figure had been 15.4 across all four quarters.

"In view of such fluctuations and the general economic uncertainty, it seems understandable if companies hold back for the time being," says Hürlimann. "However, it would be unwise, because it is precisely in volatile times that markets are redistributed." Those who continue to invest during this phase have the opportunity to make their mark on their own industry for years to come and earn above-average returns, he adds. According to a Bain analysis of around 3,900 companies from all sectors worldwide, the winners of a recession increase their EBIT by an average of 14 percent in the 13 years following the recession. In contrast, losers struggle with stagnation in this regard. "Acquisitions make it easier to get on the winning side," says Hürlimann.

Meticulous preparation is essential

However, successful M&A transactions in a challenging environment require particularly thorough preparation. In Bain's experience, a stress test helps to reduce risks in the long term. At present, the focus should be on five topics:

• Net present value. Future cash flow inflows have a decisive influence on the purchase price. The longer the impending recession lasts, the lower they could be.
• Availability of capital. Restrictions on international capital movements, national regulations and demographic change could make it more difficult to raise outside capital in the future.
• Inflation. If companies cannot pass on their costs to their customers, margins fall - a decisive factor for valuation.
• Scope versus scale. In the crisis, the consolidation of individual sectors could accelerate. In the long term, however, the focus should remain on acquiring additional competencies to cope with disruptive change.
• Deglobalization. In view of geopolitical tensions, acquisitions in one's own region are gaining in importance.

Bain partner Umbeck recommends that corporate buyers review their valuation and integration models with regard to these five issues and take appropriate action. The M&A strategy must be adjusted, as must the list of potential target companies. It is also important to talk to banks about future financing conditions. "Turbulent times often offer the best opportunities for acquisitions," emphasizes Umbeck. "The faster companies adapt to the new conditions, the greater their chances of gaining a lasting competitive edge."

Source and further information: Bain & Company

The International Mobility Report 2022 from Aon plc shows that when it comes to international business travel, new factors are in focus: Companies are focusing on re-evaluating business travel. At the top of the list are sustainability, but also Costs and political unrest. At the same time, employee safety and well-being is one of the biggest challenges of international assignments. This means that employers must also be prepared for international talent and establish an international workplace and business policies for them. The report's findings are based on a survey of more than two hundred companies worldwide.

Corona jointly responsible for changes

Ingo Trosiner, Head of International People Mobility at Aon, believes that the Corona pandemic in particular has permanently changed international business travel: "If you look at the current number and also the way companies deal with business travel, you can see that a real reassessment is taking place. In the future, factors such as costs, employee well-being and also the current situation in the country of assignment will determine whether a trip is considered necessary or not. Thus, better decisions can be brought about. This is not to say that business travel will become obsolete, as it adds real value in various areas, but the world after COVID-19 will not be the same.

Gianluca Galli, Broker Health Solutions at Aon adds: "Employers have learned about the benefits of remote working and want to continue offering it. Not least to ensure the best possible work-life balance for their employees and thus create more resilience. At the same time, however, it is necessary for companies not to focus solely on the benefits of working remotely, but to formulate concrete strategies on how to deal with the challenges and legal requirements - and communicate these to their employees in a way they can understand."

International business travel put to the test

After little to no travel in 2020 and the first half of 2021, business travel in Europe picked up again in the second half of 2021. However, a re-evaluation of international travel is taking place on the part of companies: General safety (75 %) and employee well-being (60 %) are the biggest challenges. The ability to work with and guide posted workers (36.2 %) and compliance with laws and regulations (31.9 %) were also frequently cited as key reasons for whether to implement a posting or business trip. CO2 emissions, on the other hand, were in last place with 15 %.

Many employers are now focusing on quality rather than quantity. This means that companies are increasingly looking for local talent, which is why no increase in the number of international assignments is expected. At the same time, international remote work is seen as a solution when talent is in short supply. In 2021, employees in sales (66 %) and management (65 %) in particular went on business trips again. The main focus here was on maintaining relationships and trust through personal contact.

Overarchingly, the return on investment is the top priority: the actual value for a company, the measurable benefit and the ability to demonstrate this benefit to internal stakeholders are considered the most important criteria in the assessment for or against a trip. Another decisive factor is the fact that a business trip always places higher demands on due diligence and preparation, such as compliance with laws and regulations and ensuring the safety and well-being of employees.

Increasing trend toward international remote work

In addition to the challenges already mentioned, international work brings with it many other issues for companies that employers must necessarily address before sending or sending their employees on business trips. These include, for example, regulatory compliance (54.6 %), social security (51.5 %) and taxes (49.5 %). However, 40 % of companies offering international remote work do not have policies in place for this. However, mishandling the issues related to working abroad can have huge consequences.

Previously mentioned reasons often explain the decision of companies to rely on international remote work instead of secondments. Nearly 60 % of employers indicated within the study that remote work is an option within their company. This goes hand in hand with many people's need to be able to work flexibly from anywhere in the world, allowing them to combine leisure and work away from the home office or to be closer to family. Furthermore, remote work can also be a possible solution when it comes to recruiting and retaining much needed talent.

Source: Aon plc