By Johann Armand, 14/03/2022
Like the research firm Context, which is predicting a real shockwave for the IT industry, some channel players in France are worried about the consequences that the invasion of Ukraine could have on their business. Alexandre Folman, managing partner of investment bank Crescendo Finance, explains.
Channelnews: Are you expecting any consequences for your business? And if so, what?
Alexandre Folman: At this stage, it’s difficult to really anticipate how the Russian-Ukrainian conflict will develop and what direct impact it could have on the French economy.
However, we can expect the ECB to raise its key interest rates in order to curb current inflation. This inflation is the result both of the major mechanical rebound in activity that we saw as Covid came out of the crisis and of the difficulties in supplying raw materials linked to the invasion of Ukraine. This should have the immediate effect of reducing financing capacity on the M&A market, but only to a limited extent, given the large amounts of cash that have already flowed into the market and that remain to be invested by private equity players. Not to mention the substantial cash holdings of major groups and interest rates which, even corrected, would remain at levels not seen in the past.
