Exit Markets (IPOs and M&A) for Innovative High Growth Firms

Innovative young firms are critical for creating jobs and economic growth. However, access to finance and scaling remain barriers to growth for innovation firms. The recent financial crisis has heightened funding gaps for growth firms, particularly in Europe. Access to bank loans has dropped and availability of venture capital and angel investment in Europe continues to lag behind the U.S. Over the past decade, venture capital investment in Europe has been about 20-25% that of VC investment in the U.S. In addition, a greater number of firms are funded but with smaller amounts of support which has stifled growth and been a barrier to scaling innovation.

Most successful “exits” for high growth firms in Europe have been through mergers and acquisitions (M&A) rather than through stock exchanges (IPOs). However, the landscape in Europe is changing and new stock markets and listing opportunities are opening up.

In this session, we will hear views from players involved in the IPO and M&A markets, academics and policy makers to better understand the current situation in Europe and discuss ways in which European firms can attract the necessary growth capital needed to scale their businesses in Europe.

Speakers

• Eric Forest, CEO of EnterNext, Euronext Group
• Elliot Posner, Associate Professor of Political Science, Case Western Reserve University, USA
• Miguel De La Mano, Head of Unit, Analysis of financial markets issues, DG Internal Market and Services. European Commission
• Moderation: Karen Wilson, Senior Fellow, Bruegel

About the speakers

Eric Forest joined Euronext Group as CEO of EnterNext in July 2013. A graduate of Ecole Nationale Supérieure des Mines de Nancy, Eric began his career in 1986 and joined the ECM team of Société Générale in 1992. In 2003 he moved to Oddo Corporate Finance to head up their Equity Capital Markets business, where he oversaw IPOs, follow-on issues and secondary offerings. He was also in charge of Corporate Broking. Over the last ten years, Eric has always worked in support of SMEs. He has participated actively in industry-level discussions, helped numerous mid-sized companies gain access to the market through his ongoing responsibilities at Oddo, contributed to the creation of an analyst team dedicated to SMES and served as Chairman of ALIS, the association of Alternext’s Listing Sponsors. As head of EnterNext, Eric Forest is responsible for all activities and resources linked to SMEs within Euronext. He is also a member of the Issuers Consultative Commission of the Autorité des Marchés Financiers.

Elliot Posner teaches international political economy at Case Western Reserve University. A UC Berkeley PhD, Posner’s research on the politics of finance focuses on the EU’s regulatory framework, the transatlantic arena and the international financial architecture. He is the author of The Origins of Europe’s New Stock Markets (Harvard University Press, 2009), which explores 1980s and 1990s efforts to create equity markets for SMEs in Europe. His publications have appeared in the European Journal of International Relations, International Organization, the Journal of European Public Policy, the Review of International Political Economy and World Politics, as well as in numerous edited volumes. While a European Union Affairs Fulbright fellow during 2011-2012, he was a visiting scholar at Sciences Po in Paris and Bruegel.

Miguel de la Mano is currently Head of Economic Analysis of Financial Markets at DG Internal Market. He joined the European Commission in late 2000. As 2003 he joined the newly created Chief Economist Team at DG Competition. He was appointed Deputy Chief Economist in early 2009. From October 2011 to May 2012 he was Acting Chief Economist at the UK Competition Commission. He has co-drafted various guidelines setting out the European Commission's analytical framework in all of these areas. Over the last decade he has been closely involved in dozens of in-depth merger and antitrust investigations, both during the administrative and court proceedings and has co-drafted multiple prohibition decisions. He has written extensively in particular for internal policy development. He completed graduate studies in economics at the Institute for World Economics in Kiel, Germany, and the European Institute at Saarbrucken University, Germany. He conducted his PhD research at Oxford University, UK.

Practical information

• Venue: Bruegel, Rue de la Charité 33, 1210 Brussels
• Time: Wednesday 11 June 2014, 8.30-10.00 (Breakfast is served at 8.15 after which the event begins at 8.30)
• Contact: Matilda Sevón, Events Manager - registrations[at]bruegel.org