SCCO International Research // Volume 36
Authors: Stefan Heppelmann, Konstantin Wrona
Many holding groups share the same situation: The whole is greater than the sum of the parts. This is due to the evaluation of holding groups with an average conglomerate discount of 5-10% by the capital market. In some pan-European studies the discount is even up to 20%. When looking at the main functions of a holding group, which are creating synergies by coordinating, fund raising and capital allocation, this discount seems quite astonishing. But efficient capital markets can't be wrong. So where does it come from?
