Right climate for growth
As soon as you step into Van der Arend Tropical’s greenhouses, the smell and humidity evoke memories of a relaxing holiday in the tropics. But hard work is the order of the day here, so lazing around is not an option. Indeed, Van der Arend is a huge and tightly regulated nursery with branches in the Netherlands and abroad, its own staff, extensive in-house knowledge and a forward-looking approach when it comes to continuously upgrading the product range.
‘Synergia Capital Partners approached me at a time when my family and I had already thought about the future of the company,’ René says. ‘I’m extremely fond of my profession and am hugely driven to keep improving what we do. So I want to make sure that’s carried forward and be smart about protecting the value we’ve built up over the years. In our industry, it’s “eat or be eaten”. So if you want to get it right, you’ve got to stay one step ahead.’
Family-driven decision
René continues: ‘I discussed four options with my family: the children could take over in five years; we could lease it; sell it; or involve another party. When Synergia contacted me a few weeks later, this latter option suddenly became increasingly plausible. But I first had a talk with my son, because I wanted to be 100% sure that this was the right course to take. He has two online plant businesses, so I wanted to find out what he thought of the idea and how he saw his future. He was enthusiastic and thought I should go for it – as did a number of friends, who thought this was an amazing opportunity that probably wouldn’t come along again anytime soon.
After hearing my considerations, the bank advised me to hire a corporate finance consultant and recommended IRICS CF. During one of the first appointments at IRICS CF’s office with my wife, they explained to us in clear terms what this step entailed: the opportunities, possibilities and consequences. That’s when we decided to pursue this option.’
I could never have achieved this result on my own, let alone have found the time to do it.
Creating a good memorandum
A team from IRIS CF supported Van der Arend in creating the sales memorandum. ‘What was particularly special – in addition to all the math, working through endless questionnaires and meticulously checking all the points – was the way Duncan and Olivier managed to articulate our business,’ says René. ‘It’s so important that the party you’re creating your memorandum for clearly understands our philosophy and culture and how things are done here.
We sparred a lot with the team at IRIS CF. Based on facts and our strategy for the future, we managed to put together an excellent narrative. I know how to run my business, but I’ve learned a great deal during this process. I could never have achieved this result on my own, let alone have found the time to do it. The negotiations with Synergia were tough at times, but IRIS CF always had the overall interests at heart, so we came to a deal that everyone was happy with. That’s crucial when you subsequently have to start working closely with the other party!’
Putting experience to immediate use
Synergia Capital Partners and Van der Arend will continue as partners under the name Plant World. As founder and managing director, René will further roll out the growth strategy of this joint venture, in addition to continuing as managing director of Van der Arend. ‘I’m now conducting my own acquisition discussions with fellow entrepreneurs,’ says René. ‘I have now experienced what you go through as an entrepreneur and how important it is to receive the right support. I also noticed how important it is for the parties to have a shared culture if you want to get anywhere.’
My experience has shown me what you go through as an entrepreneur and how important it is to receive the right support.
Good to be in each other’s network
Finally, René takes us back to the day the contract was signed. ‘It’s a moment I’ll never forget. It’s such a good feeling to go to the notary with your children and wrap up a new venture with a joint signature, knowing that you’re taking good care of their future. And all this happened in the former ING building in the Zuidas, of all places, where we delivered the tree ferns as one of our first projects. I look back on a beautiful process and found it very pleasant to work with IRIS CF. It’s good to be in each other’s network. If I ever do something again that requires this kind of expertise and support, they’ll be the first people I call.
It’s such a good feeling to go to the notary with your children and wrap up a new venture with a joint signature, knowing that you’re taking good care of their future.
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