Q4 I QUARTERLY HIGHLIGHTS
Riding the waves of change: the importance of being smart
As we begin another exciting year, we want to look back on recent highs and lows, and share insights and client stories that will hopefully both reflect your own experiences from these roller-coaster years and teach inspiring lessons that will help us create value for our companies and secure our shared future.
The business landscape in our increasingly interconnected world is continuously transforming, and 2023 is expected to see more of the same with geopolitical and economic uncertainties still affecting M&A activity. Even though deal volumes are ahead of pre-pandemic levels in most regions, caution in the market is growing, resulting in supply outstripping demand in some segments and a widening gap between sellers’ and buyers' valuations.
Economic uncertainty also means that some acquirors are taking more time to make decisions, as they need to re-evaluate their growth plans and corresponding M&A strategies. Business owners contemplating a sale are advised to work on substantiating their growth plan, as this will build confidence in future earnings and generate more interest and value. Private equity is continuing to move quickly, and has a growing share of the M&A market due to its simple criteria and short decision-making chains.
As always, change is a catalyst for opportunity, and M&A activities can facilitate transformative change by giving companies an avenue to achieve a broad set of goals even as they navigate previously uncharted paths.
If you’re a business owner or CEO looking for support, we have the professional resources to help you review your strategic priorities and position your company for sustainable growth.
Today, we want to share how we have collaborated closely — across borders, teams, industries and markets — with entrepreneurs and companies, allowing them to get a grip on the current situation and reach their full potential.
Global insight publications and articles
DETERMINING THE VALUE OF YOUR COMPANY I Six-part series
Value creation is arguably the single most important initiative for any company. Yet executives are not always as focused on it as they should be. CFOs need to start seeing themselves as chief value creation officers. That way they can keep a close eye on their company’s valuation and, where appropriate, incorporate their findings into budgets and strategic plans. Reed Phillips, CEO and Managing Partner of Oaklins DeSilva+Phillips in New York, and business and financial writer Charles Slack have created a six-part series of articles for CFO titled ‘Determining the value of your company’, based on their book ‘QuickValue:
Part 1: Are you your company’s Chief Value Creation Officer?
Part 2: How well do you understand your company’s value drivers?
Part 3: Finding the multiples essential to determining your company’s value
Part 4: Unlocking new value for your company
Part 5: Putting value at the center of your strategic plan
Part 6: Q&A with Reed Phillips and Charles Slack
TMT I BrandTech: The next frontier for driving growth
WEBINAR RECORDING: The webinar was moderated by our Insights specialists Ken Sonenclar and Elaine Riddell, and featured three expert speakers: Kristof De Wulf (Belgium), Jordi Ferrer (Spain) and Matt Kleinschmit (USA). Together they discussed current market dynamics in the sector including M&A priorities and investment opportunities. Read more.
CONSTRUCTION & ENGINEERING SERVICES I Flat glass companies going into 2023: to invest or save?
WEBINAR RECORDING: Global events had a significant impact on the glass processing & finishing sector in 2022, with rising energy prices and inflationary pressures among the factors creating challenges for the industry. Oaklins recently hosted a dedicated webinar looking at what happened in 2022, and which approaches glass companies should be considering going into 2023. Moderated by Valerija Lieģe, CFA, our glass processing & finishing specialist, the event featured three expert speakers from Europe and the USA discussing a range of themes including alternative energy sources, the current market outlook and indicators for the months ahead. If you missed this webinar, click here for the video recording, recap and presentation.
BUSINESS SUPPORT SERVICES I European HR services see high M&A deal volume in 2022
HR MANAGEMENT EUROPE SPOT ON: Tom Van de Meirssche, Oaklins’ HR Europe specialist, looks at recent relevant macroeconomic and HR trends, covering unemployment, temporary work rates, and job starters and leavers. Read more.
INDUSTRIAL MACHINERY & COMPONENTS I Robotics report
AN UPDATE ON THE M&A MARKET: The global robotics M&A market is continuing to show clear signs of recovery following the impact of the pandemic, with increasing use being made of robots in both traditional and COVID-affected industries such as healthcare and logistics. Read more.
BUSINESS SUPPORT SERVICES I PE interest in the global TIC sector fuels M&A activity
TIC SPOT ON: Oaklins’ TIC specialist Arjen Kostelijk outlines current market trends, provides an overview of recent transactions across the sector in three key areas, and looks at CAP Groep’s acquisition by SOCOTEC Group in the case study. Read more.
TMT I Exploring the value of SaaS businesses
eSAAS SPOT ON: Our experts Joni Pitkäranta and John Matthews explore the current status of the SaaS business model, providing a sector overview that looks at how companies can optimize their operations and the importance of key metrics. Read more.
TMT I Internet of Things improves quality of life and sustainability in cities
IOT SPOT ON: In our latest Spot On, discover the latest market developments in the IoT smart cities market, read about two recent transactions related to this facet of modern infrastructure, and track valuation trends from the past year across different IoT business models. Read more.
Global deal highlights
CONSUMER & RETAIL I Strengthening the European petcare distribution market
Bio2, a Portuguese petcare wholesaler, has been acquired by Alliando Group. Oaklins' team in Portugal acted as the exclusive M&A advisor to the shareholders of Bio2 and was involved throughout the preparation of the sale process and supported all aspects of the negotiation phase until closing. Oaklins’ unwavering support was fundamental for achieving the best deal. Read more.
CONSUMER & RETAIL I PRIVATE EQUITY I Iconic French denim brand welcomes a new group of minority shareholders
Le Temps des Cerises has closed a secondary minority MBO with three investors who have acquired approximately 20% of the shareholding: Trocadéro Capital, Turenne and Smalt. Siparex and Bpifrance have sold 100% of their participation.
Oaklins' team in France acted as the exclusive sell-side M&A advisor and supported the shareholders in finding the right financial partners. Oaklins also processed the financing for the transaction with a pool of five banks: CIC, SMC, LCL, BNP and Caisse d’Epargne. Read more.
CONSTRUCTION & ENGINEERING SERVICES I Strategic positioning in the Nordic building materials sector
Through the acquisition of FagFlis Group, Norway’s leading B2B specialist in ceramic tiles and related products, STARK Group A/S, secures a crucial building block in their Nordic growth strategy.
Oaklins' team in Norway acted as the exclusive sell-side financial and strategic advisor to the shareholders of FagFlis Group. The team was engaged throughout the sale process from the drafting of marketing materials, presentations and the financial data pack to the development of a strategic potential buyers list, management presentations, due diligence, and negotiations through to the closing of the transaction. Read more.
AGRICULTURE I PRIVATE EQUITY I Leading Canadian horticulture supplier plans for next stage of growth
The shareholders of Brookdale Treeland Nurseries (BTN) have sold a controlling stake to Rouge River Capital.
Oaklins’ team in Canada, supported by Oaklins’ horticulture specialist in the Netherlands, acted as the sell-side M&A advisor to Brookdale Treeland Nurseries in this transaction. Oaklins’ deep experience and knowledge of the horticulture sector and established relationships with potential international buyers all played an important role in the transaction. The team was involved throughout the preparation of the sale process and supported all aspects of the negotiation phase until closing. Read more.
ENERGY I A renovation wave to improve homes’ energy performance in France
With the acquisition of EnergyGo, HomeServe joins the energy renovation market, valued at more than US$30 billion in France for 2022, with the objective of playing a major role in reducing the energy consumption of French households and making the net-zero carbon transition effective.
Oaklins’ team in France organized, prepared and led a competitive process involving tier-1 French and international trade buyers as well as private equity investors, to support EnergyGo’s growth and development strategy. The process had high levels of interest that enabled shareholders to select a preferred and limited set of parties, and was successfully won by HomeServe, the best value-added partner for EnergyGo’s future. Read more.
CONSUMER & RETAIL I Leading German manufacturer of luxury beds and Spanish flagship group strengthen their position
The acquisition of SCHRAMM Werkstätten GmbH by Flex Equipos De Descanso, S.A. is an excellent example of a well-considered growth strategy in a specialized market.
Oaklins’ team in Germany acted as the exclusive financial advisor for the sellers in this transaction. Oaklins’ Spanish team established initial contact with the buyer and provided support during the transaction. Read more.
CONSUMER & RETAIL I FOOD & BEVERAGE I PRIVATE EQUITY I A new chapter for a well-known French herbal tea brand
The acquisition of Les 2 Marmottes by Jacobs Douwe Egberts is a turning point in the history of this SME, which has become one of France’s favorite brands.
Oaklins’ team in France led a very competitive process in which it acted as the exclusive sell-side financial advisor to support Les 2 Marmottes in choosing the best partner from among several PE funds and industrials, in order to pursue its growth. This operation demonstrates Oaklins’ expertise in consumer goods, enabling it to support a growing and well-known brand in its ambitious project to develop internationally. Read more.
CONSUMER & RETAIL I PRIVATE EQUITY I Consolidation of growth strategy in the grocery retail chain market in Croatia
Lonia Trgovina, Croatia's leading retail chain in the smaller, convenience format category, has been acquired by Studenac, the fastest-growing retail chain in the country.
Oaklins’ team in Croatia acted as the exclusive sell-side advisor to the Jaram family, the owners of Lonia. Before the transaction all stores owned by the Jaram family were carved out into a separate real estate company with which long-term lease agreements were concluded, thus securing a new revenue stream for the family. Read more.
AEROSPACE, DEFENSE & SECURITY I High-growth precision aerospace manufacturer acquired by PE-backed industry 4.0 platform
IDL Precision Machining (IDL), an engineering-focused manufacturer of highly complex precision components and assemblies primarily for the aerospace & defense end market, has been acquired by CORE Industrial Partners portfolio company Cadrex Manufacturing Solutions (Cadrex). Oaklins was able to capitalize on IDL’s growth trend throughout the process.
Oaklins Janes Capital Partners, our aerospace, defense & security team in Irvine, acted as the exclusive sell-side advisor to the shareholders of IDL. The team was engaged throughout the entire sale process from the drafting of marketing materials and presentations to the development of potential strategic and financial buyer lists, due diligence management, negotiation and overall guidance through closing of the transaction. Read more.
LOGISTICS I Iconic Australian road transport group strengthens local presence of German logistics giant
The strategic combination of Glen Cameron Group with DHL Supply Chain strengthens DHL’s position in the road freight market, and creates one of the largest logistics companies in Australia. Oaklins worked tirelessly towards the success of this transaction.
The engagement with Oaklins started as a strategic review for the owners to consider all options for the business. This led to a review of growth opportunities, sourcing potential buyers and finding a path to liquidity by identifying DHL as the right partner for Glen Cameron Group. Read more.
TMT I Strengthening wireless communication offerings
Celfinet has been acquired by the Indian listed multinational Cyient. Oaklins played a crucial role in helping Celfinet reach the finish line of a very complex cross-border transaction.
Oaklins’ team in Portugal acted as the exclusive M&A advisor to the shareholders of Celfinet. The team was involved throughout the preparation of the sale process and supported all aspects of the negotiation phase until closing. Read more.
