A smooth transition for ALSIC
After 25 years, Dierik Vermeir has sold his company ALSIC. While this was a big step, with Vandelanotte’s guidance, it was one he could take with full confidence. Vandelanotte was charged with providing a valuation, searching for a suitable buyer and handling the legal aspects of the transaction.
Founded in 1997 by Dierik Vermeir, ALSIC is an engineering and consultancy firm focusing on supply chain management, with specialist expertise in inland waterway transport. According to Dierik, for example, ‘if a skipper sails from A to B, they must navigate through locks and under bridges. What we do is optimise the route based on all manner of data. If a skipper is set to arrive at a lock in two hours, but will be unable to get through for another hour, they will be advised by our software to sail at a slower pace to save on energy and CO2 emissions’. Together with Dierik and his wife, the company is home to 21 employees. ‘The app we developed for Vlaamse Waterweg (the Flemish waterways authority) is now being rolled out across 13 different countries. While this is a fantastic result, it means that we also have to invest in people, as well as an office, local to East Asia’. ALSIC consequently finds itself at a turning point, at a time when Dierik has already entered his sixties. ‘My daughters have no interest in taking over the business. So, we knew that at some point we would have to look for a buyer.’
Momentum
While Dierik originally gave himself two to three years, the process suddenly gained momentum due to a combination of different circumstances. Besides bringing the European project, he also suddenly received an enquiry from a potential buyer. ‘I went straight to Tom Vermeersch, our Account Manager at Vandelanotte. We've always enjoyed a great working relationship. Tom knew that we intended to sell the business in a few years.’
A sale of this magnitude is mentally taxing endeavour. You don’t just need technical support, but also a sounding board.Dierik Vermeir , ALSIC
The handover process
Coincidentally, Vandelanotte had just at that time started to focus more heavily on assisting in acquisitions and looking for buyers. According to Veerle Buyl, Associate Head of Corporate Finance, 'last year, we recruited Nico Daminet for this very purpose, especially given his vast experience in acquisitions'. Nico and Tom went to speak to Dierik. ‘I was then faced with choosing whether to explore further opportunities, or wait another few years anyway’, he says. In the end, he decided to pursue the opportunity, but with an important proviso: that continuity could be ensured, both for the clients as well as the employees. 'At the same time, I also decided not to stay on as a shareholder, while also initiating the search for a new CEO to limit the length of any transfer period.'
In just a matter of weeks, Vandelanotte had identified four candidates. ‘Usually, what we do first is put the company in the shop window via an 'information memorandum', a company profile describing its strengths and weaknesses, along with the necessary figures. Armed with this, we then start approaching potential buyers’, explain Veerle and Tom. 'However, since ALSIC poses such an attractive proposition, we were actually able to partially skip this phase’. After several discussions with prospective buyers on price and other conditions, the longlist became a shortlist, from which one party was finally selected. As Veerle recalls, ‘At this stage, the seller usually enters into exclusivity. Then comes the due diligence, the technical side of the whole process. This is followed by a period of due diligence in which advisors to the buyer check whether the information provided is correct. After this comes the legal phase, where the contracts are finalised, including the sale contract, but often also other contracts like the management contract, loan contracts, leases, etc. Finally, the whole process comes to a close with the effective transfer of shares.’
An entrepreneur will spend years building their business, with the sale being the icing on the cake. We therefore want to make the best out of it for our clients.Veerle Buyl , Vandelanotte
Ready to sell
Vandelanotte has all the expertise in house to provide a company valuation to be sold off, to attract a suitable buyer, to undertake negotiations and finally handle the legal and administrative procedures. This A-to-Z approach proved invaluable for Dierik. ‘Sales like this are mentally taxing process. You don’t just need technical support, you need a sounding board. To be able to turn to Vandelanotte proved incredibly useful and invaluable.’
In this case, the process took six months to complete. This was not only due to ALSIC's quality and the expertise of its counterparts, but also due to the company actually being ready for sale. ‘We had already worked on that over previous years. Thanks to our reports, we knew exactly which points needed that extra bit of attention. A great tip for any entrepreneur: the better prepared your business is for acquisition, the more time you will save during the transaction process' says Tom, with Veerle adding that ‘thanks to our involvement, we now have a greater understanding of the value drivers behind our businesses. This is crucial when it comes to getting a good acquisition price later. ‘An entrepreneur will spend years building their business, with the sale being the icing on the cake. We therefore want to make the best out of it for our clients’, they conclude.
Want to be part of helping clients transfer their businesses? Find your dream job at werkenbijvandelanotte.be.
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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