Often, when thinking of finance, people look towards the world of Mergers and Acquisitions (M&A). This field encompasses transactions between firms that could include either the purchase of one company by the other (acquisition) or the fusion of both in which they form a new entity (merger).
However, as we spoke to Bo van der Ven and Emma Dugrenier from Hogenhouck m&a, it became evident that M&A is more than just buying and selling companies; rather, there is a whole world to it, where each transaction is unique and can take multiple shapes, sizes, interests, and objectives.
Inevitably, this multiplicity in M&A creates the need for different types of M&A advisors, as it is not the same to advise a local firm, or multinational corporation, or an entrepreneur selling its life work, or a financial firm seeking new investment opportunities.
Within the M&A ecosystem, Bo and Emma explained to us their experience in the field and within their company, and how Hogenhouck is unique as it leverages its client-focused approach. They also shared how each of them contributes to the firm’s mission in different ways. However, their the synergies between their teams that they manage to meet Hogenhouck’s objective of providing advice to clients who have an entrepreneurial vision.
Can you tell me more about your decision to start in the M&A/business development team at Hogenhouck?
Bo’s journey:
Both Bo and Emma started their professional journey elsewhere. Bo sought to satiate her affinity for quantitative analysis within a transaction service team but soon realized that she was missing a strategic dimension to her work. Seeking new opportunities, she decided to apply as an intern in the team. The click was immediate and mutual. Not only did the work allow her to deepen her interest in management strategy, but she could also draw from her quantitative and modelling skills. So, after wrapping up her time as an intern, she decided to work as a full-time analyst for Hogenhouck’s M&A team.
Emma’s journey:
Emma’s journey was quite different. She found her passion for business during a marketing internship at a multinational firm. After, she decided to continue learning about the field doing an MSc in Business Administration with a focus on strategy. To complement her experience, she started looking for an internship where bridging the gap between theory and practice was possible; thus, she was recommended to join Hogenhouck by a friend who positively described his experience working in M&A. By joining Hogenhouck she discovered how the Business Development team gives her the opportunity to focus on people from a strategic point of view. All while she supports the team and assists potential clients in finding the best solutions for their profile.
What role does Business Development play in the M&A process at Hogenhouck? How does it contribute to achieving client-centric outcomes?
Hogenhouck has a unique approach where a separate team handles outreach to new and potential clients, while another team focuses on executing ongoing projects. Emma, who is part of the Business Development team, explains that this approach gives Hogenhouck a competitive edge. Her work involves approaching and assisting companies and entrepreneurs, using her expertise in the market to help them grow.
“My work usually starts through a process of market analysis, to ensure that we become an expert within a market sector and can properly advise our clients in the process of transforming their company.”
The conversations about “What does the client really want?” tend to be very open and exploratory. And, instead of focusing on executing a deal, Hogenhouck is interested in creating long-term relationships with clients. Without any strings attached, the Business Development team focuses on building a relationship, conducting market research, keeping in touch with entrepreneurs in the field, and checking in on their needs.
In addition, Emma highlighted that Hogenhouck is dedicated to maintaining a “no strings attached” approach. An example being the fact that their bonus structure is not influenced by the acquisition of new clients. An approach that not only leads to a highly focused deals team that consistently deliver outstanding performance but it also guarantees a unique onboarding experience for newcoming clients.
“A good example is one client that we reached out to in 2018, with whom we kept in contact – occasionally grabbing a coffee – and eventually reached out to us last year to sell their company”.
Once a client decides to pursue a transaction, the deal team – including Bo – steps in. She and her team work closely with the client to lead the transaction, and in Hogenhouck’s case, this often involves working closely with entrepreneurs who wish to sell their company. The process includes a long list of responsibilities, including writing an in-depth information memorandum, creating a financial model, a marketing process, talking to potential buyers, managing the due diligence process, negotiations, and eventually a closing, i.e. the actual sale of the company.
In your experience, what are the key challenges and opportunities in pursuing client-centric M&A deals?
The M&A industry has a reputation for its dynamism and hectic characteristics, and Hogenhouck is not an exception. However, Emma has a different perspective, especially as she focuses on the key challenges of maintaining and nurturing the relationships built with clients. She believes that it’s crucial to stay within the client’s radar and deepen the relationship. On top of this, she thinks it is crucial to stay up to date with the market and the financial ecosystem in the Netherlands to have a better understanding of your environment.
According to Emma, this is different from a normal sales position because there is a timing aspect to every deal or relationship you are creating. You are always looking to be there for your client at the right time.
Can you elaborate on the strategies Hogenhouck m&a uses to identify and engage potential M&A targets that align with a client’s specific goals and vision? And how does diversity in the teams contribute to achieving client-centric outcomes?
Hogenhouck uses several strategies to engage with clients, including market analysis, rolling over the conversation from one enterprise to the other, or even by word of mouth. Bo and Emma both agree that Hogenhouck’s client-centric approach generates beneficial outcomes, as previous clients who are satisfied with our services tend to share our reputation and by doing so, they can enlarge their outreach and deal volume.
Regarding the impact of diversity in this process, Bo and Emma are on the same page. Bo mentions that having a diverse team is beneficial for the deal process as each team member has a special set of skills that contribute to the different steps in the deal. For example, one team member could have great people skills and be a good listener, which is essential to managing relationships. Another team member might have technical strengths that are key for the process of financial modelling.
The slogan of Hogenhouck m&a is “Business as unusual”, can you explain what that means (to you)?
Here, Bo and Emma have their own unique view of its meaning. Bo sees the idea of “business as unusual” as the experience of most of Hogenhouck’s clients.
“When an entrepreneur or founder engages with the deal team, it tends to involve their lifetime’s work. In the 200+ transactions we’ve facilitated, we have assisted entrepreneurs in buying and selling businesses and finding investors, thereby contributing to the development of their life’s work, or providing financial security for the remainder of their lives. And, since each business is distinct, each transaction is unique. This principle inspired our motto: “Business as unusual”.
For Emma, the unusual aspect of Hogenhouck’s stems from the nature of her work, which she sees as dynamic, diverse, and fun.
“Our job is always different because you have different clients, different conversations, and hear different stories.”
She says that it is particularly special to hear the story of entrepreneurs, learning about how they have built their companies and why they are ready for the next steps. This reminds her of the impact of her work and so she keeps her motivated to go for the best result for her clients.
What advice or insight would you offer to aspiring professionals, especially women, who are interested in pursuing a career in M&A with a focus on client-centric deals?
As Bo cleverly mentions: “There is no one type of M&A. Working for a big corporation is different from working for an M&A department at a large bank which is different from the Big 4, and that is different from an M&A boutique.”
Therefore, she thinks it’s key to figure out what type of work you would like to do. Think of the impact of the work, the pace of work, and whether you feel more comfortable with bigger or smaller teams. Importantly: Be honest with yourself.
Additionally, Emma recommends stepping out of your comfort zone. In her case, a friend encouraged her to apply for an internship at Hogenhouck, which made her think “Maybe I can find my way in the finance world”. According to her, you can learn a lot by doing and now she is happy she took the risk in the first place.
Before we go, do you have any advice for your past self?
Bo: “The idea of M&A might be tensive, but don’t let that discourage you. You have the right to be there and claim your space.”
Emma: “Do not think that you are not capable enough, even when you do not fulfil all the requirements.”