“Acquisitions are part of business – that realisation has brought me a lot.”

06 October 2024

After assisting with several acquisitions as a consultant, Bart Stroobant began dreaming of launching his own management buy-in (MBI). The Entrepreneurial Buyout Academy provided him with financial tools and negotiation techniques, and above all, a community. “An acquisition process is an emotional rollercoaster. To know that others feel the same way has given me greater confidence.”

insights-Bart-Stroobant

About Bart Stroobant

  • Freelance consultant for wealthy investors and businesses across various sectors
  • 15 years of experience in IT and telecoms, from support technician to manager and shareholder
  • Experienced pilot, founded his own helicopter flying school, has worked for the Belgian helicopter operator NHV and was involved in starting up the fixed-base operator NSAC in Ostend

Why choose the Entrepreneurial Buyout Academy?

“About 10 years ago, an entrepreneur friend of mine asked if I could help them manage their investments. One request led to another, and eventually, word of mouth did the rest. Today, as a freelance consultant, I support clients in financing, shares and start-ups or reorganising businesses. In that role, I have also led several acquisitions in recent years. Each of them has proved to be an inspiring process. In early 2024 – the year I turned 50 – I decided I wanted to acquire a business myself, preferably in a sector where I feel at home, IT or aerospace. I knew which size range I was considering, I already had a target in mind and I had even started talking to banks. All the same, though, I was looking for a sounding board. Was my plan realistic? Had I overlooked anything? When I heard Hans Vanoorbeek speak at a Vlerick event – their Mergers, Acquisitions & Buyouts conference – it stirred something inside me. Aha, I’m not alone in thinking this way!”

What are the main insights you gained from the training programme? In what ways have they helped address the challenges you face?

“I found the module on appreciation quite interesting. For instance, I have come to realise that businesses often use the classic J-curve in presenting themselves as an outside opportunity. That’s not necessarily too good to be true, it is something to be wary of. In the same category, we have the importance of looking for averages (normalising). This applies not only when talking about costs, but also debt position, EBITDA and net working capital. In terms of negotiation techniques, I benefited greatly from the insight that, as a prospective MBI acquisitions specialist, you are always slightly behind the curve. We don’t have the financial clout of private equity or the potential benefits of synergies, such as a strategic buyer. While that does temper expectations, it also helps me position myself. I have to rely on my expertise and human connections, i.e. my team and personal network. The interactions with my fellow participants were useful too. Acquisitions are an emotional process, a real rollercoaster. You commit yourself to a specific target, start going down a particular rabbit hole and end up having to make some difficult decisions, etc. Seeing and hearing that others go through the same thing has given me greater confidence. Now I am able to anticipate these situations better.”

How have you gone about implementing those insights?

“In my case, the training programme ran parallel to my own negotiations process. That was great, as it allowed me to apply the tips and lessons in real time. What comes to mind are tools to reach the correct valuation and the importance of normalisation, as well as having ‘boots in the field’ and a connection with the vendor or owner. Until then, I had been very courteous, with all communication going through the broker, not wanting to hassle the owner under any circumstances. However, the training programme made me all the more aware of the importance of commercial due diligence – not just studying the case file, but really getting to know the business. What is the owner's story? Who is the client? Is the profit forecast realistic? Where is the margin? These are incredibly important questions to ask. Ironically, although my own clients hire me to answer those very questions, I was so enthusiastic about my target that I had partially lost sight of them in my own acquisition process. In that sense, the training programme served as a good mirror for me.”

What was the impact of your chosen actions?

 “Unfortunately, the deal I was working on fell through, so now I’m hunting for a new opportunity. The training programme has helped me stay motivated. Others have told me that acquisitions require patience, and lots of it. You are walking a fine line between stepping away from a bad deal and daring to compromise. For instance, I recently decided to widen my search beyond the aviation and IT sectors. I found out through the training programme that my focus is on people – connecting, working together, being able to leave something behind. So the human connection is more important than a focus on the activity alone. Besides these insights, the course has also given me a community. When we think of entrepreneurship, we often think of the typical West Flemish business leader who has built their firm from scratch. But it could also be a tax expert in Brussels working alone, a private investor or an MBI specialist like me, looking to acquire an existing business and grow it. The realisation that I belong to that small sub-family of entrepreneurs, the role models I got to meet and my desire to inspire people myself within a few years – that’s priceless.”