mergers and acquisitions
Healthy prognosis for M&A
Managing info-flows
Changing shape
Cross-border cooperation
Assembling experts
What sNewS Issue W'October 1998 13
mandates lies in our ability to effectively
mobilize our internal human resources
and optimize our international
information flow - a point Havill was
keen to stress at the gathering of
Europe's F&A managers in London last
month (see related article on pages 4-5).
'In designing the network, we've chosen
a flat organizational structure. We intend
to delegate accountability to the lowest
appropriate level in every case,' Havill
says. Four key centres of competence will
embrace both origination and execution
capabilities - these being located in
London, New York, Amsterdam and
Singapore. They will also support other
satellite operations. A second tier will
have a country focus and share
origination and execution capacity -
these include centres in Frankfurt, Paris,
Budapest and Warsaw - while a third
and final tier will consist of offices whose
task is primarily to originate transactions
- these being located in Sao Paulo,
Buenos Aires, Mexico, Santiago de Chile,
Madrid and India.
However, the flat organization structure,
and the associated need to maintain open
flows of information about shared cliënt
relationships, has to be managed in a
realistic way. The movement of market-
sensitive data is a case in point. 'Already
several of our clients have expressed
concern, when bringing us into strategie
discussions, about the importance of
containing the spread of this sensitive
information. The fact that they're seeking
comfort on this issue is entirely
understandable. We need to make it
crystal clear to them that we operate,
internally, on a strict "need to know"
basis.' Rabobank's strategie focus, long
term commitment, and financial
resources augur well for ultimate success
in this key area of strategie advisory,
mergers and acquisitions.
C A ergers and acquisitions (M&A)
J..VXhas become a driving force in
the world of contemporary health care,'
says HC global business manager,
Arnold Kuijpers. 'This is
why we're planning to
assemble health care-
dedicated M&A teams
throughout the global
network.' Our strategy in
health care M&A advisory
(as with other health care
products and services) is to
focus on three leading
^subsectors - narnely the
providers of service (such as
hospitals and HMOs), the
producers of pharma-
ceuticals, and the
manufacturers of medical
equipment. 'These are fields
where RI can seize real
opportunities,' Kuijpers
maintains. 'By providing specialized
knowledge, we will be addressing one
of this fast-changing industries' most
pressing needs.'
In pharmaceuticals, for example, there
is a wholesale shift in production
methods - a new range of products is
coming to market. As the traditional,
chemistry-based paradigm is gradually
^supplemented and even replaced by
revolutionary new modes of R&D (as
well as production) that derive from
the worlds of genetic engineering and
computing, the industry is naturally
changing its shape. Pharmaceutical
manufacturers are shopping for
infusions of dynamic young talent (as
well as patents) from emerging biotech
Arnold Kuijpers gearing health care towards M&A advisory
startup companies. Their own
manufacturing and distribution
processes are being reshaped -
sometimes requiring that they pursue
global economies of scale. These and
other such trends create opportunities
for an M&A adviser that can deliver
clear strategie analysis as well as
practical ideas.
Similarly, in the medical products
market, the trend is towards more
cross-border cooperation, more joint
ventures and acquisition of additional
manufacturing capacity. Many
companies that have been able to
flourish on a narrow range of products,
sometimes in a single market, now
recognize the need to widen their
geographical and productive
base to attain strategie
economies of scale. 'Health
care service markets are
increasingly international.
Some of the most important
players are in saturated
markets like the US,
Australia and the UK. An
increasing number among
them are targeting oppor
tunities in Continental
Europe and in emerging
countries where we have a
strong presence and a
unique local knowledge
base,' Kuijpers says.
The intent is to begin with a dedicated
team in London, headed up by Gerard
Gregg-Smith, an expert who comes to
us from Robert Fleming. Early next
year, we will assemble a second team in
New York, followed in two or three
years time by teams in Asia and Latin
America. 'Fortunately, M&A doesn't
require any significant outlays of
solvency, nor a high credit risk
exposure,' Kuijpers notes. 'At the same
time, the income can be quite
substantial, provided we can really
leverage our internal knowledge base.
Indeed, we have some interesting
mandates already.'
