Edison Investment Research and Morningstar will be creating the research reports mandatory for all equity issuers. The reports are intended to improve companies' transparency and visibility among investors and, additionally, facilitate issuer comparability.
Edison Investment Research will create a qualitative research report for each enterprise in the new SME segment. The report will contain an assessment of the enterprise's business model based on a personal meeting, an analysis of the company's data as well as that of the competitive and market environment. The initial research report will be eight to ten pages long. An update of around four pages will be published twice a year.
Morningstar's quantitative research report is based on the work of 120 qualitative working Morningstar analysts. By means of a mathematical method, the work of the analysts is transferred to the smaller and medium-sized enterprises of the new segment. This is based on the balance sheets and cash flow statements of the issuers. The company's evaluation is based on twelve key indicators and updated daily.
The two research approaches are independent, and the reports will not contain any investment recommendations. All reports will be available at www.boerse-frankfurt.de. Issuers will have the option of ordering additional research reports.
Deutsche Börse's new SME segment intends to improve this sector's access to investors and growth capital. The target group are companies with tried and tested business models that have already been successful with investors. One of the admission requirements is the collaboration with a Deutsche Börse capital market partner, who will examine the company's suitability for the segment and also will monitor the issuer after their IPO.
Deutsche Börse's aim is to establish a functioning ecosystem for growth in Germany and Europe that supports companies through all growth stages all the way up to listing, therefore generating more IPOs.