M&A MEANS BUSINESS
WHAT'S NfwS Issue 5 May 1996
info exchange
Tjebbe de Jong (left) and Hein Godschalx
A tree can grow strong and tall provided its roots run sufficiently deep.
Rabobank's deep roots in Dutch agribusiness are proving a stable base for a
global network that is transforming it into an ideal partner for cross border
mergers and acquisitions (M&A).
The Netherlands, of course, ranks among
the top three agriproduct exporters in the
world. Only the US and France are larger.
This fact has been much commented upon
as this country occupies such a modest
patch of lowland at the edge of the North
Sea. However, as Leonardo da Vinei once
remarked, 'art thrives in restraint'.
Holland developed intensive production
methods to compensate for its deficit in
geographical size. And this development
was largely financed by Rabobank. Today,
it can boast nearly a century of experience
^n the highly specialized agribusiness field.
GROWING INTERNATIONAL
MANDATES
Rabobank's M&A network began its
international expansion in New York.
The opening of M&A units in Germany,
Belgium (1992), France (1993) and the
UK (1994) followed in quick succession.
The team is now comprised of 21
professionals hailing front eight different
countries. Future growth is envisioned in
Central Europe, South East Asia and
South America. As the market for food
and agribusiness products is increasingly
global in nature, and the US and Europe
are maturing, the consequent need for
rationalization represents a major growth
opportunity. Rabobank now aims to
increase both the size and number of its
^tternational mandates. This is where
"lobal networking and expertise come
into play: both have a cumulative effect
so that the value of the whole system
starts to exceed the sum of its individual
parts.
SYNERGIES AND SPIN-OFFS
'The more market knowledge that we gain
at the local level and can make available to
our clients worldwide, the better we can
profile ourselves as an unmatched source
of in-depth strategie advice,' explains the
M&A department's Hein Godschalx.
'Good advice usually feeds into execution.
The idea is that our M&A mandates
should provide synergies and spin-off
business opportunities that the whole of
CBS can enjoy. The rest of the network can
help us - in turn - by generating ideas.'
BUILDING TRACK RECORD
Rabobank can point to a rather impressive
track record for a relative newcomer in the
corporate finance field. Rabobank M&A
has successfully clinched several important
deals of late. It assisted Avebe, a world
market leader in potato starch, in its
takeover of Prignitz (Germany) from
Amylum. In pet food, Rabobank advised
the shareholders of Petfood Service in its
sale to the UK-based Harrisons
Crosfield. In Agro Chemicals, it
represented Royal Dutch Shell in the sale
of its remaining erop protection
distributors. In mineral waters, M&A
advised Egon Schindel Gruppe in its
acquisition of Adelboden, the Swiss-based
subsidiary of Bols Wessanen.
BEST RESEARCH
From flower cuttings to pet foods, from
meat to potatoes, from food processing
machinery to processed vegetables and deli
meats, Rabobank's aim is to cultivate an
in-depth understanding of the entire chain
from breeding material to the final
consumer product. In this, it is assisted by
one of the best food and agribusiness
research teams in the business, as well as
by its continuing sponsorship of
specialized international colloquia like the
recent Sugar and Sweeteners Conference in
Bangkok. These activities enhance
Rabobank's profile as more than just as a
lender but as a hub of specialized
knowledge as well.
COMPLEX TASK
Mergers Acquisitions has become a
highly competitive business in which it is
essential to have access to decision-makers
at the boardroom level worldwide. M&A
is no longer about generating fees alone. It
is about cultivating long-term and
mutually productive relationships.
Deciding on a merger or acquisition is a
complex task. It invariably involves
strategie commitments and considerable
investments with the potential to make or
break a clients' future.
ACTIVE ASSISTANCE
This is why the M&A professional and the
cliënt must have a relationship that is
based on trust and enhanced by Rabobank
expertise. The added value of the M&A
specialist extends far beyond finance alone.
His or her job is to advise on the client's
relative strengths and weaknesses - based
on a global market overview - and then to
actively assist in the formulation of
rational strategies that meet the client's
long term aims. 'Unmatched sector
specialization, in-depth relationships with
all the leading players, and the capacity to
link both of these to a strong international
execution capacity. It is the complex of
these three factors that determine success
or failure in M&A,' Godschalx concludes.
MERGERS
ACQUISITIONS
(M&A)
Inmiddels zijn M&A teams
in New York, Duitsland, België, Frankrijk en
het Verenigd Koninkrijk. Uitbreiding is
voorzien in Midden Europa, Zuidoost Azië en
Zuid-Amerika. Dankzij de wereldwijde
reputatie op het gebied van de Agribusiness
van de Rabobank en het door de jaren heen
opgebouwde netwerk wordt de bank steeds
meer ingeschakeld bij het begeleiden van
fusies en overnames. Door de hiermee
opgebouwde kennis, kan de bank steeds
meer profileren als specialist. Het 'track
record' laat dan ook steeds meer grote deals
zien,zoals de overname van Prignitz door
Avebe, de verkoop van Petfood Service aan
Harrisons Crossfield.etc.
