0 Who is Emmanuel Durand?
0 What main factors are required for
international food and agribusiness M&A
deals to be successful?
0 What are Rabobank's main strengths
within food and agribusiness M&A?
0 What can we improve?
0 How do you win boardroom access?
0 Why do we have a joint venture
with Rothschild?
0 What is your expectation for M&A
activities in the future?
0 How important is M&A for RI's
Wholesale strategy?
A "My background spans various international markets, which I
think aids my understanding and view of the global M&A business.
1 attended university in France and the U.S., and since then I have
lived and worked internationally for more than 20 years. I have
been with Rabobank for more than a decade, and prior to that
I worked for several financial institutions - Paribas, Bankers Trust,
Salomon Smith Barney - in Latin America, Europe and the U.S.
When I began at Rabobank in 1999,1 covered M&A activity in
Latin America, based out of New York, and subsequently became
co-head of M&A for Europe. In 2004,1 became head of M&A for
the Americas, based again in New York, and global head of M&A
at the end of 2009."
A "First, you need to have a long-term view of the business
and an in-depth understanding of your clients' strategy. You
cannot just step in and then step out of a cliënt relationship, or
indeed the M&A field. You build long-term relationships based
on valued-added advice and a demonstrated ability to execute
on those ideas. Second, you need to be able to continuously bring
new opportunities to your clients and to think ahead of the market.
Third, and crucially, you need to provide flawless execution
globally. A world-class bank must be able to provide its clients
with a consistent, first rate experience in all markets. So, for
me, the key elements of a successful global M&A franchise are:
relationships at the decision-maker level, timely identification of
and follow-up on opportunities, and consistently flawless execution."
A "As Rabobank, our primary strength within the M&A field is
that we operate globally with a very clear industry focus. This is
proving vital, as an increasing number of our clients either already
operate on a global basis, or are very keen to understand industry
dynamics in other markets. Our ability to think strategically about
our clients' most important priorities, and to deliver the combined
capabilities of our FAR and M&A departments, enhances the overall
quality of our relationships. Another important element is our
deep knowledge of various F&A sectors, which enables us to take
an expert view and identify valuable opportunities within those
industries."
A "We need to continue to develop relationships at the CEO/
boardroom level. So, we need to continue to be aggressive - in a
positive sense - and produce well thought-out ideas. Additionally, as
l've mentioned earlier, we need to ensure that we have consistent,
top quality execution around the world. As with any organisation,
we are only as strong as our weakest link."
A "With patience and perseverance, professionalism and expertise.
It's not something that happens overnight - it takes time as well as
strategie views, smart ideas, business insight, and solution-driven
proposals. Because of our industry focus and knowledge, we
can bring higher-quality ideas more regularly than other banks.
In addition, the reorganisation of the global Wholesale business
around core clients and core sectors will signifïcantly strengthen
our ability to deliver our institution to clients at the highest
levels."
A "We have a joint venture with Rothschild because there
is measurable value in combining our very complementary
organisations. Rothschild has a strong brand name within
M&A, and that is clearly very important for gaining access and
recognition. Second, from a geographic perspective, Rothschild
provides complementary coverage to our own. For example,
they can provide coverage in areas such as the Middle East and
Eastern Europe, whereas we can offer strong coverage in the
Netherlands, the Americas, and so on. Additionally, an increasing
component of our M&A business is in public transactions, which
require specific skills, market credibility, and a demonstrated track
record. In this respect, Rothschild is particularly adding value to
our efforts. Three recent transactions that were originated and
executed on a joint basis with Rothschild - JBS JBS/Pilgrim's
Pride, Dean Foods/Alpro, and CSM/Best Brands - represent
sizeable, highly visible, cross-border transactions with Rabobank
core clients."
A "The years 2008 and 2009 were diffïcult due to the economie
crisis, but now we are starting to see some recovery. There
is more dialogue with clients, and we can see companies
once again being interested in organising deals. So, from that
perspective, the future looks more positive. However, the issues
currently taking place in Europe, notably in Greece and to a lesser
extent in Spain and Portugal, still have to fully play out for us to
see how markets will be affected. If we look at the BRIC countries,
such as Brazil, India and China, we see increasing opportunities.
One of the positive aspects of our M&A franchise is that we
are positioned in an industry that is relatively stable and still
fragmented on a global basis, providing continued opportunities
for consolidation. Our F&A concentration is therefore a plus
for the future, and also affords us some protection from the
downside."
A"M&A is key to RI's Wholesale strategy because it enhances
the quality of the relationship with decision-makers at our core
customers. From that relationship, we can signifïcantly enhance
the profile of Rabobank by delivering strategie solutions together
with a full array of financial services and products. M&A decisions
are made at the boardroom level, and that is the ideal position
for Rabobank to engage in a long-term, strategie dialogue with
our clients about their needs and everything we are capable of
delivering to them.'B
issue 24 ju RI WORLD
