Sports Gameplan: M&A Advice for the sporty entrepreneur
As an entrepreneur, you may be aware of the broad expertise that Oaklins provides in addressing crucial questions about your business. Whether your question is about selling your company, business valuation, or attracting (growth) capital, Oaklins has extensive experience in various business industries.
Furthermore, Oaklins has built a significant track record within the sports sector. Derk Verheul and Pim Sinnige are two experts from Oaklins who, using a "Sports Gameplan," dedicate themselves daily to this unique industry.
Can you explain what a Gameplan is?
Derk: Essentially, a Gameplan is a strategic blueprint developed by Oaklins with the aim to enhance our sector expertise. This blueprint is crafted through years of experience in various sectors. It's also quite exciting that within Oaklins, driven by our entrepreneurial DNA, employees have the opportunity to actively develop themselves in the commercial aspect of M&A advice.
And what does such a Gameplan look like?
Pim: A Gameplan encompasses various initiatives. With the assistance of our international colleagues, we create a detailed overview of all significant companies within a specific sector. We proactively approach the most interesting parties and maintain warm relationships with them. With these companies we share relevant information of mergers and acquisitions, as well as other interesting news. Simultaneously, we proactively explore sectors and compile periodic newsletters that we share within our network. This way, we build valuable relationships with potential clients.
Why is a Gameplan necessary?
Derk: In the Netherlands, there are numerous companies providing M&A advisory services. To attract new clients, it's essential that we differentiate ourselves from the competition. Besides our track record at Oaklins Netherlands of approximately 50 deals and Oaklins globally, with more than 400 deals annually, we recognize that sector expertise and long-term relationships are increasingly important. This is precisely where our "Gameplan approach" makes a key difference.
Pim: Additionally, this approach also helps us collaborate with our international colleagues. One of the distinctive characteristics of Oaklins is our presence in over 40 countries, bringing a wealth of local knowledge. Thanks to the "Gameplan approach," we're better equipped to share insights into specific markets and potential buyers. This manifests itself, among others, in practical collaboration on projects. Currently, we are assisting our colleagues from Brazil and Latvia in assignments for companies in the sports sector with our sector-specific knowledge.
What are the benefits of having sector expertise?
Derk: Possessing sector expertise brings numerous benefits. It accelerates and optimises the efficiency of deals because we quickly understand market dynamics and the strengths of the company being sold. Furthermore, we provide added value to our clients by guiding them in strategic decision-making based on in-depth industry insights. This not only increases our chances of winning mandates, but also enhances the likelihood of successful and profitable transactions for all parties involved.
Pim: Another important advantage is that we often have existing relationships with the most likely buyers. Thanks to our extensive network and close connections, we can act swiftly and often make a good assessment of potential interest. Due to our involvement in previous transactions in the market and our active monitoring of M&A developments in the sports sector, we are also better positioned to provide advice on expected business valuations.
Not everyone immediately thinks of the sports sector when it comes to M&A advisory. How did you decide to focus on this sector?
Derk: My strong interest in sports, both as a spectator and an active sportsman, enhances my enthusiasm for combining my work with my personal passion. Additionally, the ongoing global growth of the sports industry contributes to the opportunities for mergers, acquisitions and investments. In essence, specializing in the sports industry proves to be fulfilling on both a personal and professional level.
Pim: My sentiments align closely with Derk’s. During discussions with entrepreneurs in this sector, I often find that the conversations eventually expand into general discussions about sports. It's truly enjoyable to connect at work with like-minded individuals who share the same passion for sports!
What kinds of companies fall under your definition of the sports sector?
Pim: We use a broad definition when looking at the sports sector, as companies in this industry often face similar market developments and growth factors that extend sectors. Our definition of the sports sector is quite diverse, encompassing a diverse range of companies. This includes companies engaged in sports technology, manufacturers and distributors of sports apparel and sporting goods, (football) clubs, producers of sports nutrition, fitness centers, and various other related companies.
Oaklins is already active in many different industries. Is there still room for a Sports Gameplan within Oaklins' already broad portfolio?
Derk: We have experienced significant growth with Oaklins in recent years. Currently, we have more than 50 colleagues based in our Amsterdam office. This expansion not only allows us to further expand our deal portfolio but also to develop a broader range of sector expertise. This, in turn, enables us to better secure new assignments and diversify.
Pim: Furthermore, there's a highly sportive culture at Oaklins. Almost every day, colleagues engage in sports activities together, and we recently participated in the Dam tot Damloop with around 20 colleagues. From interns to partners, everyone completed the 16km race!
Another growing trend is the increasing focus on the mental and physical well-being of individuals, in which sports play an important role.Derk Verheul
What makes the sports sector different from other sectors in which Oaklins is active?
Derk: It's striking that the sports sector in a large part is driven by entrepreneurs who have a great passion for their business and are often actively involved in sports themselves. Many of these companies started as hobby projects and have grown into full-fledged enterprises over the years. As the business expands, the role of the entrepreneur often changes, from a jack-of-all-trades who handles everything to a director primarily focused on managing people and processes. For some entrepreneurs, this may not align with their true passion. In such cases, considering a new partner can sometimes be a wise choice, allowing the entrepreneur to concentrate more on tasks that truly excite them.
Without a doubt, the sports world is constantly evolving. Are there any trends you're noticing within the sports industry?
Pim: Certainly, there are specific trends within the sports sector that have a significant impact. Personally, I find the digitalization of the sector to be an interesting trend, where "fan engagement" is increasingly facilitated. The ability to follow your favorite team in real-time on a daily basis through digital media or to participate in fantasy sports teams contributes to an increased sense of involvement in the world of sports. In our view, this development has a highly positive influence on the overall growth of the sports sector.
Derk: Another growing trend is the increasing focus on the mental and physical well-being of individuals, in which sports play an important role. Additionally, we observe a growing emphasis on sustainability, which is a trend in almost all sectors. Of course, the trends and their impact vary depending on the specific sub-segment within the sports industry.
Can one effectively capitalize on these trends, and if so, how is it done?
Derk: Absolutely, stagnation means decline. It's crucial for companies to remain vigilant about market evolution and adapt accordingly. One example is creating a plan to increase the company's sustainability. This can be achieved by appointing someone within the company responsible for this aspect and developing an environmental, social and governance (ESG) strategy. It's worth noting that investments in sustainability often yield substantial, if not complete, returns. Furthermore, this has a positive impact on the attractiveness of the company to potential buyers, greatly enhancing the company’s marketability.
One of the distinctive characteristics of Oaklins is our presence in over 40 countries, bringing a wealth of local knowledge. Thanks to the "Gameplan approach," we're better equipped to share insights into specific markets and potential buyers.Pim Sinnige
Can you tell us about Oaklins deals within the sports sector?
Derk: One of the standout collaborations for me is the work with Kubus Sports, where we assisted them in both the acquisition and sale processes. This journey began with advising on the acquisition of the sports brand “Naish”, a renowned Hawaiian producer of high-end watersports products. After the successful completion of this transaction, we transitioned into the role of a sales advisor, working with the owner to find a strong partner to realize their future plans. Eventually, we found this partner in Transformation Capital.
Pim: Internationally, Oaklins also has extensive experience with significant projects. A good example is the sale by our English colleagues of “Hawk Eye”, the company behind the line-judging technology used in events like the Champions League (football) and Wimbledon (tennis), with Sony, the globally renowned telecommunications conglomerate, ultimately coming out on top.
What do you hope to achieve in the future with your work in the sports sector?
Derk: My aspiration is to further expand my relationships with entrepreneurs active in the sports sector. Leveraging our in-depth expertise in this industry, we have the opportunity to provide comprehensive support to the companies we advise, allowing them to focus entirely on the successful management of their business. Moreover, I aim to become a leading force in the global sports industry within Oaklins. As experts in the sports sector, we can add value to all the transactions we do.
Pim: In the coming years, my role in this will be slightly different, but I am very much looking forward to supporting entrepreneurs in the sports industry, alongside Derk. Our focus will be to help entrepreneus in further expanding their businesses by finding new partners to enable growth. Additionally, by constantly evolving and learning about this fascinating sector, I aim to attract increasingly challenging and interesting projects to our team.
And finally, perhaps a very relevant question for the reader: do you have any tips for the sports entrepreneur who may be considering selling their company?
Derk: Always ensure that you are thoroughly prepared in case of a sale of your company. It's crucial to have an experienced advisor by your side who has a deep understanding of the added value and strengths of your company and can communicate this convincingly to potential buyers to maximize the transaction. Finally, having a good connection with your advisor is of great importance, since you will be going through an intense period together.
Receive the best M&A advice in the field of sports or other disciplines
If you are interested in gaining more insights into the sports sector and/or if mergers, acquisitions, or divestments are part of your strategy, please don’t hesitate to reach out to Derk, Pim, or any of our other advisors. As the most experienced mid-market M&A advisor, we are ready to talk and exchange ideas and experiences!
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