Interview with Mr. Jean-Marc Teurquetil, Vice Chairman of Corporate Finance International
Corporate Finance International (‘CFI’) is one of the leading global groups of M&A advisory firms who were present at the first IPEM event held in February of this year and who will be present at the next IPEM event in January 2017. We asked Jean-Marc Teurquetil, Vice-Chairman of CFI and Managing Partner of CFI France what he expects of the upcoming event.
“To all the Private Equity (‘PE’) firms coming to the event we will be able to present CFI as a truly global M&A group. We will discuss the opportunities we can offer to PE firms for their portfolios and the management of their portfolios due to the opportunities we can provide all over the world. In addition to the IPEM event, we connect to PE groups through conferences and bilateral discussions as well as cross-border pitches with teams of advisors coming from various locations in Europe or the world. CFI holds two conferences per year and, as a matter of fact, the following one will be in Lisbon next month”.
To the question what CFI offers to international PE groups and in what ways CFI is better positioned than other M&A advisory firms, Mr. Teurquetil stated that CFI offers three things:
- “CFI offers information on a global scale from any place in the world. CFI has or can get access to information on any market and/or sector that PE groups are looking at. Providing information is an ongoing business for us. Personally, I meet with a lot of PE firms just to have an exchange on what we do and even when there isn’t a pitch. The ability to obtain information globally is very important for PE groups.”
- Buy-side advisory. “In many PE firms the strategy, most of the time, is to expand their assets; to perform a buy & build where the buildup is in a certain area or sector. We can offer them a partnership on the buy-side where they are expected to expand very quickly. Many other M&A firms cannot do buy-side on a worldwide basis. What we offer is a global presence in North America, South America, Asia and in Europe, as well as, cross-border sector expertise teams.”
- Sell-side advisory. “We are here to help PE groups to divest and help them sell their portfolio companies at the end of their 5 to 8 years’ investment. Having access to potential buyers worldwide is key in such a process, this is what we offer.”
Mr. Teurquetil continues: “We are better positioned than many of our competitors because our roots are very local. Each country is managed by CFI members who are very professional and experienced and have been working in the business for over 20 years. So we have been able to build up very strong relationships over a long time. This is really something!“
Looking at the PE market for the next 12 months, Mr. Teurquetil comments: “Due to the high level of liquidity, the competition for these PE funds is still increasing which means they are spending a lot of time on deals they miss in the end because there is only one winner. On large auctions that is a big issue for them. Equity and debt liquidity is at such a high level that the price of the assets is really increasing.
I would say it started years ago in the US and now in Europe asset prices are high again. For them to have the opportunity to talk to a group like CFI is important because we can provide ‘insight’ information and we trade on deals which are not managed through a big auction, however, we can provide them with information crucial for them to be able to make a transaction. I would open the auction on a one-on-one basis. It is very important for them to be able to buy and sell companies not only through large auctions.
That is what we can provide due to our information system. We can facilitate them to come and bid in an auction and assist them make a transaction out of the auction and, due to the price of the assets, it is very very important that we help them. The PE market is expanding very fast, and is more and more international, in particular all over Europe. We have PE firms that have opened offices in various countries. It is not the same case as five years ago, when there were very few PE firms located only in Paris, London, Germany, Italy, etc. Now a lot of them have offices in various countries so that’s new. Now it’s more global, with more competition, and with asset prices at a high level due to the huge level of liquidity on the equity side and debt side. As a result, what CFI can provide is very helpful for them.”
Lastly, we asked, “What is the added value for participants to attend IPEM”?
“Immediate connection to hundreds of players, both PE firms and Law firms; and the connection is very strong. We can say CFI was here last year for the first time and it was very good for a first event and we are sure the second event will be even better. Since the first one was already such a success. It is a very good tool to meet so many people in a short period of time. We have people coming to the event from all over the world meaning Europe, US, and even some from Asia. A truly international place!”
For more information on CFI please visit: www.thecfigroup.com