Bank J.Van Breda & C°

In early May, Professor Mathieu Luypaert presented the results of the M&A Monitor. The large audience, of course, included our three Prime Foundation Partners, who are active in the Centre for Mergers, Acquisitions & Buy-outs. A perfect opportunity to touch base about their partnership.

It appears the merger and acquisition market in Belgium has reached its turning point. For the first time in six years, the sustained rise in acquisition prices has not continued. However the number of transactions did continue to grow, even though there were considerably fewer foreign acquisitions in 2018. Another striking point is that the acquisition of technology and attraction of talent are gaining importance as motivations for an acquisition. Finally, when it comes to the size of transactions, smaller acquisition deals are on the increase. These are the most important conclusions of the sixth edition of the M&A Monitor, an annual survey of more than 150 Belgian merger and acquisition specialists.

The Belgian mergers and acquisitions market gradually seems to be reaching its peak. It is not just the number of transactions but also the selling prices which rose for the fifth year in a row in 2017. The highest valuations are found in the real estate sector followed by pharmaceuticals, technology and healthcare. The demand is greater than the supply and competition is increasing. In addition, more and more foreign players are showing an interest in Belgian companies. In view of the anticipated further growth in 2018, there is a danger of overheating. These are the main conclusions of the M&A Monitor, an annual survey which involves over 150 Belgian mergers and acquisitions experts and advisers.

In contrast to a decreasing trend on the international mergers and acquisitions market in 2016, the Belgian M&A market has experienced further growth, particularly with regard to medium-sized and smaller deals. The demand exceeds the supply. Although transaction prices are rising, they are still acceptable. Anyone wishing to sell a profitable business these days can easily find a buyer. This can be explained by the fact that bank financing has become easier, as well as increased interest by foreign players in Belgian companies.

2015 and the beginning of 2016 were characterised by a pronounced increase in the number of transactions in the Belgian mergers and acquisitions market. Demand is greater than supply, stimulated by easy and cheap access to finance and greater availability of financial resources to investment companies. Furthermore, the persistently low interest rate environment means there is increased interest from family investors, wealthy individuals and foreign private equity funds in Belgian medium-size enterprises. It is therefore not surprising that the prices paid are increasing across all sectors and business sizes. These are the findings from a survey of 142 Belgian mergers and acquisitions experts into their experiences over the past year.

As a member of the Centre for Mergers, Acquisitions & Buy-outs, Bank J.Van Breda & C° wants to share and further expand its expertise on succession in the next three years.

One in three clients of Bank J.Van Breda & C° is heading towards the end of their career. For the bank which serves “entrepreneurs and liberal professions only”, offering a personal and proactive advisory service on the delicate succession process is therefore high on the agenda. ‘As a Prime Foundation Partner within the Centre for Mergers, Acquisitions & Buy-outs, we want to become more in tune with the M&A market,’ says Peter Devlies, member of the Management Committee. Together with our dean Marion Debruyne, he explains the strategic value of this partnership.