International Film Partners has been organising delegation trips to Los Angeles for around 10 years. Concrete commissions are by no means the main intention. Instead, participants want to understand which changes are dominating the discussion in the USA. The major series trend, sustainability concepts and new forms of licensing are emerging there. The technological pioneer is always San Francisco with the nearby Silicon Valley and the Bay Area. The world's largest exploitation companies can probably be summarised under the keyword "Hollywood", even if this refers to the Los Angeles area as the second largest conurbation in the USA. In America, money has always led the way and set the course for the future. We are now feeling the effects of the big wave of transactions here too.

Hardly a week goes by without large and small transactions being reported. At the same time, the number of insolvencies is on the rise. The credit rating portals see a deterioration in payment behaviour as a harbinger. The days by which the payment deadline is exceeded, the overdue days, best describe the state of the current economy. Strong and large companies have better opportunities to react than small businesses. The pressure to "join" a group or corporate group as a small company is increasing. The increasingly sanctioned administrative and documentation obligations represent a further challenge for small companies, which increases the stress level in addition to acquisition, development and actual management. The specific personal liability risks that decision-makers should fear will be explained by leading expert speaker Prof Dr Josef Scherer at an Ensider Production Executive Networking event in Munich in June.

The closure of independent companies quickly leads to substantial questions, first and foremost about the value of the company. Both in the event of insolvency and when selling company shares, you should have a solid assessment of this. Especially when it comes to valuing complex assets and project-orientated companies, the usual valuations practised by tax consultancies based on revenues and cash flows fail. However, the smart combination of established methods quickly leads to a range. The actual company value is ultimately determined by the market anyway, the compromise between supply and demand.

Although a lot of money is flooding into the market and the question of buying potential does not arise, investors are taking advantage of the poor economy. The profit lies in purchasing. This also puts attractive company values under pressure. Controlling structures and sustainability reporting, as well as integrated management systems, are then often decisive. Such instruments make it easier for third parties to assess risks and opportunities. The reduction of the probability bandwidth ultimately increases the willingness to pay a higher purchase price.

In any case, a keen eye is required for the next two years. Recognising the gap, identifying opportunities and solid partnerships will bridge the time window until the order situation and project financing improve. The long-term forecast for the creative industries is good. This is the only reason why so much money is rushing into this market. Digital cultural industries require few resources, have a long lifespan and can therefore represent truly sustainable growth - growth that is urgently needed for prosperity all over the world. Creativity is endless, unlike our earthly resources.

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(Author: Markus Vogelbacher)