Deal Maker of the Year Awards 2013
WINNER - LAURENT LEFEBVRE DEAL: Omnes backs Eratome
NAME: Laurent Lefebvre COMPANY: CM-CIC Corporate Advisory POSITION: Deputy Director EMAIL:
laurent.lefebvre@cmcic.fr WEBSITE:
www.cmcic-corporateadvisory.com
FIRM PROFILE
CM-CIC Corporate Advisory, a business unit of CM-CIC Capital Finance, is the Mergers and Acquisitions line of CM-CIC Group. The M&A team assists its clients at all stages in their development strategy with advisory mandates for both purchases and disposals and opening up of capital to new investors. Its core business is focused on mid-cap markets with enterprise value from €10 to €500m.
CM-CIC Corporate Advisory has a team of 15 first-class professionals, divided into Paris and Lyon offices, focused on clients satisfaction and long-term partnership. Execution based on excellence and deep industry knowledge allows its team to create unique solutions for its clients in a wide range of markets and sectors.
Moreover, CM-CIC Corporate Advisory has an ability to capitalize, if necessary, on all other business lines and the international network of CM-CIC group, a major European Bank, notably 3rd bank for SMEs in France and a leader on large corporates. With a strong local presence in France and an international network covering more than 40 countries, CM-CIC Group offers the whole range of services to its clients from Retail Banking to Investment Banking.
DEAL OVERVIEW Q
Please summarise the transaction
After two OBO led in 2008 and 2010, Eratome‘s CEO signed a sell-side mandate with CM-CIC Corporate Advisory end of 2012 in order to move forward and confront Eratome to the market. Our team ran an open bid to both strategic buyers and private equity funds, to explore different alternatives and solutions. Convinced by their business model and growth potential (organic and build-up),
Eratome’s
management quickly decided to refocus our efforts and discussions on PE funds on a buy-out transaction.
Mid-July 2013 and after a fierce competition, the French PE firm Omnes invested EUR 15m and took a majority stake in Eratome as part of leverage buy-out transaction. The founder and CEO Jean-Michel Nucera, the management team and the investment fund BPI France also took part in the transaction.
Eratome offers building renovation services, from
plumbing, painting, flooring to other services, exclusively in the social building sector. The company, which has around 100 staff members, expects revenues of EUR 30m this year.
Q What was your role within the transaction
Our team was mandated as exclusive financial advisor of the sellers fully in charge of the global sell-side-process. Our role was to assist the client in the following steps: valuation of the company, drafting of an Info Memo, search for potential buyers, negotiations and setting up the deal (including supervision of legal and fiscal aspects and financing negotiations).
16
www.finance-monthly.com Q
What other types of clients or transactions have you been involved with
In an intense and successful year for our team, I was also in charged and involved with: • A mystery shopping player bought by a leader in marketing and opinion research. Financial Sell-side Advisor (pending / Dec 2013)
• Laserson, French chemical distributor, bought by Safic Alcan, international distribution group of chemical specialties. Exclusive financial buy-side advisor (Oct 2013)
• Bongrain, dairy products maker, and Terra Lacta, French dairy cooperative, signed a joint venture agreement. Exclusive financial buy-side advisor (Oct 2013)
Q
What were the challenges or difficulties presented
• Continuing volatility in the global economy meant that most bidders, Corporates and PEs were taking a cautious approach to deal-making
• Image of a building sector that suffers from strong cycles
• Tension on the French senior debt market • Compressed timeframe determined by sellers • Fierce competition to handle • Acquisition by Eratome of a competitor during our process
Q
How were the challenges or difficulties overcome
• Important marketing phase to present and sell
Eratome’s market position as a French leading player and its differentiating and improved business model : First-class organization, high quality service, profitable growth in an atomized market with a strong potential (limited business cycles, external growth, gain of market share…)
• Forsee, plan for and pre-empt effectively and efficiently to all questions that could impact the process or valuation
• Create a dynamic competition between reactive mid-cap funds and select quickly a short list highly motivated by ERATOME’s team and project
• Play a key role in senior debt negotiation. Day-to-day discussions (current trading, trends, project, external growth opportunities…)
• Arrange a compressed timeframe, challenging but efficient, to keep all players 100% involved
• Groupe 2BR, the French school transportation services provider for disabled children, buy-out with Compagnie d’Anjou and Martek. Exclusive financial sell-side advisor (April 2013)
Q
What are your thoughts and predictions for 2014 and beyond
After several semesters of weak activity, we can expect a recovery in LBO activity in a market with few quality assets and high amount raised over the past year. Transactions will concentrate on companies with strong potential and for which competition between investors will be intense.
FRANCE
BIO
Laurent is Deputy Director in the CM-CIC Corporate Advisory’s Paris team.
Since 2002, Laurent has advised Corporate and private equity teams in France and abroad in various sectors, with a specific focus on the agro-business, retail and construction sectors. He has worked on a wide range of transactions, from advising entrepreneurs on the sale of their company to large groups or investment funds (Babeau-Seguin,
Courtepaille, Eratome…)
to advising large groups on their acquisitions and divestures (Midi Libre, Téréos, Bongrain…).
Laurent Joined CM-CIC Corporate Advisory in 2005. He started his career in 2002 at Arthur Andersen and subsequently entered investment banking with BNP Paribas and DC Advisory.
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