News: from around the world
News: from around the world
Corporate Finance Firms Capitalmind and EquityGate Announce Merger to Create a Pan -European Corporate
Crowe Horwath welcomes BaxterBruce In early May, Crowe Horwath, a leading global risk consulting firm, reached an agreement to acquire BaxterBruce Ltd. the U.K.’s specialized insurance industry management consulting firm. By joining forces, the two firms will create one of the U.K.’s premier risk consulting firms to the financial services industry. Financial terms were not disclosed.
The new group will operate under the trade name ‘Capitalmind’, and be run from six offices across Europe, including Benelux, France, the Nordics, Germany and Slovenia. The new Capitalmind has been designed to respond to clients’ wishes for a fully integrated pan-European and international corporate finance advisory.
Established in 2009 by Justin Baxter and Daniel Bruce, BaxterBruce specializes in risk management, capital management and regulatory change to the insurance industry in the U.K. The firm, which has been expanding at a rate of more than 20 percent each year, has built a reputation for excellence underpinned by deep actuarial, regulatory and change management capability. Baxter and Bruce take up leadership roles as partners in Crowe Horwath.
Capitalmind is owned and managed by 14 partners, all entrepreneurs, and comprises 55 professionals committed to delivering the highest quality execution and service for clients. Clients benefit from indepth transaction intelligence and tried-and-tested processes, as well as valuable and far-reaching contacts. The high degree of repeat business the group enjoys is viewed as the ultimate endorsement.
Crowe Horwath is already a dynamic force in the U.K., serving some of the world’s leading companies in the financial services, life sciences and manufacturing industries. The combination of the two firms will help Crowe Horwath expand the services it offers its clients in the U.K. and around the globe and will also deepen its insurance industry, actuarial and change management expertise. For BaxterBruce, the merger will enable its clients to access a broader set of capabilities in the key economic centers of the world.
Over the past five years the combined firm has executed more than 200 deals across Europe, Asia and the Americas for a cumulative transaction value of €8bn. Its activities can be broken down into M&A (60% - majority sell-side), MBOs (20%), and Growth & Debt (re) financing (20%). The advisory is geared around dedicated sector teams and research to provide clients with unique knowledge, deep insight and the capacity to create both strategic and financial value: intimate knowledge of buyers’ and competitors’ strategies, growth strategies, valuation, debt providers, industrial needs, geographic trends, access to market leaders, and ‘hot’ buyers, etc.
Ervin Schellenberg, who is a founding member of EquityGate and one of three board members of Capitalmind, believes the merger was both necessary and inevitable: “Nowadays mid-market businesses and transactions are global. Our European clients require resourceful advisers who have experience in a multi-national environment. They need to be assisted by talented professionals on the ground, with an established network to help them successfully close their strategic transactions.” “Today business goes beyond national borders,” says Michael Fabich, co-founder and partner of EquityGate. “We are proud of what we’ve achieved in the German market - we’ve built a strong and successful domestic presence, and we are now extremely excited about the future.”
“Crowe Horwath and BaxterBruce have built their businesses on similar values, which we believe is key to our success together in the future,” said Jonathan Burnett, CEO of Crowe’s global risk consulting practice. “I am delighted that our people and our clients globally will benefit from our two firms joining forces in the U.K.”
“Today marks an important step in the firm’s evolution to become Europe’s leading mid-market advisory,” says Paris-based Michel Degryck, board member of Capitalmind. “This means complete European coverage,” says Dutch-based board member Jan Willem Jonkman. “Six offices, a comprehensive footprint, supported by genuine global reach.”
“Joining Crowe Horwath is a great fit with our values and way of doing business,” said Justin Baxter, co-founder of BaxterBruce. “This move will reinforce our two firms’ leadership in the financial services industry and open up new possibilities for our team and our clients.” “This is a natural evolution for BaxterBruce,” added Daniel Bruce, co-founder. “Our clients really appreciate our attention to quality and the depth of our expertise. We will now have much greater critical mass to help clients tackle a wider range of challenges, without compromising the principles on which our reputation has grown.”
Acquisition International - May 2016 5