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Kimura Financial Realistic on Germany
Kimura Financial comment on foreign investment in Germany as Warren Buffet visits the EU nation.
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June 23, 2008 (FPRC) -- In light of Market Guru Warren Buffet's recent trip to Germany with the Berkshire Hathaway cheque book and pen in hand, a number of private equity and venture capital firms have naturally felt obliged to offer insights as to the growth potential in the region. For Kimura Financial, finding high yield returns in the nations world-famous SME space may not be as easy as it looks, since the draw of being 'Europe’s biggest economy' is at best a thin veil masking the many fundamental challenges, such as rising costs and tighter borrowing, facing German business owners today.
Germany has a strong history of producing successful, family-run businesses which have transitioned into international players, and Kimura Financial strong presence in Europe has them well placed for investment - particularly given Germany's current challenges.
Firstly, the credit squeeze has resulted in many of these small-medium sized enterprises, who depend heavily on bank loans to finance expansion, being turned down on applications for fresh funds. Secondly, Germany is not a country which has great experience of foreign investment, and what little is does have has been far from positive. However, a new administration and economic policy have resulted in a welcome change on that particular landscape, and Investment from neighboring countries is generally seen as preferable to impersonal, trans-Atlantic ownerships.
Furthermore, insiders at Kimura Financial were apparently quick to point out that Germany is facing a wall of mounting overheads, with a majority of domestic Gas and Electricity suppliers expected to raise their tariffs in the coming quarter, and Oil continuing to push records so the analyst team at Kimura Financial are going back to basics, looking for "Cash positive, family-owned businesses with a track record of sticking to core strengths and weathering economic storms".
Send an email to Biz Nice of http://www.kimurafinancial.com
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