If a business acquisition is to have the best chance of success

If a business acquisition is to have the best chance of success
Wednesday December 5th, 2018 Alexander van Rossum

Article Fortaleza Capital | Packaging Yearbook 2019 published by NVC Netherlands Packaging Centre

Fortaleza Capital, if a business acquisition is to have the best chance of success

With over 1,500 small and medium-sized enterprises, the Dutch packaging landscape is highly fragmented. However, the number of companies is steadily decreasing. Entrepreneurs actively seek or are forced to collaborate for internal or external reasons. This also increases the need for specialised financial expertise, both at companies looking for acquisitions and for entrepreneurs about to sell their company. Fortaleza Capital specialises in financial advice for acquisitions in the packaging sector. Its pillars: eighty years of experience in the packaging industry, combined with extensive expertise in merger and acquisition processes.

What is the value of my company? How can I prepare my business for a possible future sale? Is it wise to sell part or all of our enterprise? And if so, to a strategic partner or a financial investor? Which acquisition options allow us to grow our business? Can management participate? And what steps do we take as a company to reach the next level? These are some of the many questions that the Fortaleza Capital specialists answer on a daily basis.

Extensive knowledge of the packaging industry

Two of Fortaleza Capital’s partners are thoroughly familiar with the sector. For many years Peter van Leeuwen was managing director at Van der Windt Verpakking, nowadays part of PACOMBI GROUP.Hence Peter brings all-round packaging expertise to the table. In the field of paper and cardboard, Dirk Schut possesses the same high-level knowledge. In his previous position, he was CEO and co-owner of SolidPack, a manufacturer of solid board.

Both partners know the business models of packaging companies like no other, from purchasing and sales processes to end markets. The two entrepreneurs have also taken over several businesses themselves and have been closely involved in the sale of the companies where they were employed. And, not unimportantly, both partners have an unmatched network and have both served as board members of relevant trade associations. Connections are therefore quickly made: synergetic relationships are clear at a glance. Thanks to this current network, Fortaleza Capital can closely follow trends and developments in the sector.

Finding links

Alexander van Rossum, the founder of Fortaleza Capital, is the one tasked mainly with finding possible links between potential merger partners. He looks at how companies can strengthen each other, where their added value lies and which investors could possibly join. With almost thirty years of experience in corporate finance, Alexander also provides financial advice. In addition, he manages the buying and selling process, so that entrepreneurs – busy with the daily operations – no longer have to worry about this.

Chris de Vries, partner business valuation at Fortaleza Capital, also has a track record of decades in corporate finance. As the financial director at a multinational, he was actively involved in mergers and acquisitions and, as an independent advisor, advised on over 300 transactions. As such, Chris has a vast experience in valuing companies and in accurately assessing financial positions.

Strategic sparring partner

Fortaleza Capital’s advisors look beyond the financials. They also act as experienced sparring partners on corporate strategy. Such a strategy may be aimed at optimising the future potential of two merger partners through an acquisition: the 1 + 1 = 3 effect. Or at advising entrepreneurs to keep a close eye on value impacting factors, such as purchasing, sales and risk profile. The entire spectrum of the market is being addressed: paper, cardboard and plastic, and from wholesalers, transporters, recycling companies to logistics and e-commerce companies.

The language of the entrepreneur

The strength of Fortaleza Capital is also reflected in the approach: professional, independent, hands-on and practical, in line with how the owner of an SME thinks. No convoluted reports but documentation that gets straight to the point. No jargon, just clear language. There are no standard protocols, every situation receives a tailored approach. Attention is also paid to the relational aspect, which is always an intrinsic part of any acquisition. In many cases, these are companies where the shareholders are either family members or have been working together for a long time.

Why Fortaleza Capital?

The takeover of a company is always a complex process. It is a necessity – not a luxury – to have a specialist at the table. Fortaleza Capital is a partner you can rely on; a specialist in the heart of the market dealing with it on a daily basis. Thanks to this experience, a goal-oriented approach is assured and the efficiency of the process is also guaranteed. Within this thoughtful approach, consideration is given to the interests of all stakeholders. And that support gives this complex process of buying and selling a company the greatest chance of success.