Disclaimer: Unless noted otherwise, views and analysis expressed here are the author's own and based on public sources. The article is intended for informational and entertainment purposes only. This is not financial advice. Please consult a professional for investment decisions.

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Sweden captivates the public’s attention when it comes to serial acquirers - but what about Benelux? After all, the Low Countries have produced not only compounders like Lotus Bakeries (deep-dive), Quatra (deep-dive) and D’Ieteren (yes, we’ve covered them too), but also Buy & Build experts like Main Capital, Waterland, Strada Partners, Around Partners, and Dynamica, among others. 

I want to mention that RollUpEurope are fortunate to partner with Strada. LV8 by Strada is the closest thing Europe has to Alpine Invetors’ legendary CEO-in-Residence and Investor-in-Residence programmes. Apply today!

So imagine my excitement upon receiving an invitation from Brightwolves, a Brussels-based Commercial DD provider, to an M&A soirée at their offices. The event’s centerpiece was a panel moderated by Miguel Van Damme, a Brightwolves co-founder, and featuring Bart Wouters (Strada - a Buy & Build PE firm and a supporter of RollUpEurope); Pieter Lathouwers (Around Partners - a Buy & Build Independent Sponsor); and Serge Roofthooft (ClearXperts - a project sourcing / staffing company). 

Between them, Strada and Around have incubated 20+ platforms, with combined revenues approaching €1B. Enough to anoint Bart and Pieter Belgian Buy & Build Druids: 

The Rollup of Tomorrow Vol.17: Strada's reinvention from midcap software PE to Europe's rollup champion. 2.5 years, 500 applicants, 10 live platforms

7 years, 7 platforms, €700M+ revenue: an afternoon with Around Partners to understand Belgium’s Independent Sponsor phenomenon

Anyway, here are my 4 key takeaways from the ritual event:

Before we kick off, two important announcements:

One, this issue is sponsored by TechCredit Partners: the debt advisor of choice for serial acquirers. Don’t DIY debt: call Linus!

Two, we’re helping an international TICC group recruit their first-ever Head of M&A for the DACH region 🇩🇪 🇦🇹 🇨🇭

Jobs like these don't come around very often. Nothing wrong with PE-backed aggregators… but this one’s 100% founder-owned, and it’s the founders you’ll be reporting into.

You will own the entire deal cycle: from the first convo through to closing. You will have between 5 and 10 years of M&A and/or Private Equity experience, ideally gained within a Buy & Build platform, combined with native-level German skills. What’s on offer? A highly competitive compensation package (attractive cash comp + chunky equity) PLUS an opportunity to build the next Phenna.

 Interested? Hit reply. 

Before dissecting the panel, let me tell you about my most revealing conversation. Jeremy Schuermans is a co-founder of Companions, a Flemish HoldCo with 9 current investments and 2 exited ones. Jeremy co-founded Companions 3.5 years after 14 years of corporate grind, first at P&G and later at Unilin, a flooring behemoth. Companions has raised a total of €12M in equity across two rounds (from Belgian family offices). It has used exits to fund buybacks, raising the founders’equity stake to c.60%.  

What Jeremy may have lacked in M&A nous at the outset, he more than made up for in commercial judgement - scooping up niche, sub-€2M EBITDA business in fragmented industries and finding ways to grow them to €3-4M EBITDA, with a view to exit. 

Companions’ portfolio includes companies like Substera (pharmaceutical APIs and excipients) and Qovera (industrial roofing). To use the latter as an example, at present the group consists of three businesses: L.I.D. (€14M revenue), RT&S Daken (€7M revenue), each with several decades of experience and a third, as yet confidential acquisition with €4M revenue. 

 I asked Jeremy 3 questions:

1) If you had to start all over again, what would you do differently?

“On the first few deals, I would surround myself better with people who know the industry. We knew nothing about the rules and processes and did our own due diligence. We learned a lot, but with all the consequences that come with it...  Luckily we did more good things than mistakes and it turned out well”. 

2) How do you handle management buy-in (i.e., how do you source CEO candidates)?

“We have built a strong reputation there, so we get a large natural inflow of candidates every month. On top of that, we work with an in-house headhunter when a position is more technical or niche”.

3) What is your industry selection framework?

“We are sector agnostic. We look at the traditional criteria such as profitability, add-on acquisition options, talent and asset heaviness. At our size, it is above all important to keep your eyes and mind open to what you come across, because based on a theoretical model, you often could not even come up with our sectors”. 

Now:

Bart and Pieter reinforced my longstanding suspicion: folks who grew up doing high-stakes deals with many zeroes inadvertently complicate sellers’ lives - and their own - by over-thinking earnouts. 

So what are the alternatives?