Selling a business is all about timing. “Private equity firms know: if you sell before the age of sixty, it’s because you want to; after sixty, it’s because you have to,” says Ronald Verhaard, Private Banker at ING. “That distinction affects how a business is valued. Selling before sixty can lead to a higher valuation.” That remark stuck with entrepreneur Cleophas. It planted the seed for a sales process that began back in 2017, when it became clear that his daughter did not wish to take over the family business in underfloor heating systems.
Ronald Verhaard has known Cleophas for fifteen years. “My role is to hold up a mirror: what are your wishes and dreams? Set a goal on the horizon and work towards it.” Timing also played a role in his personal life. After thirty years of entrepreneurship, Cleophas’ wife felt it was time for a change. “Everything revolved around me. My family gave me a lot of space, but that can’t last forever. I’m looking forward to a new chapter,” Cleophas says.
The timing for the business transfer was favourable. “There’s a lot of capital in the market looking for returns, and our sector is attractive. As part of the energy transition, underfloor heating systems can contribute to lower carbon emissions by integrating with renewable energy sources like heat pumps, aligning with EU climate targets for 2030.”
"}},{"componentType":"sectionTitle","title":"A golf flight that changed everything"},{"componentType":"paragraph","richBody":{"value":"Together with his management team and a few advisors, Cleophas prepared the company for sale, with his private banker Ronald Verhaard in the background as a trusted sounding board. The financial administration was further professionalised, and a clear and compelling prospectus was created. “A good CFO is indispensable in a business transfer,” says Cleophas. “We worked hard to improve the EBITDA (earnings before interest, taxes, depreciation and amortisation). That’s a key benchmark for investors looking to acquire a company.”
But numbers aren’t everything. The people guiding the sales process are just as important. Ronald Verhaard helped Cleophas find an advisor who was the right fit. “Ronald organised a round of golf. One of the four players was Marco du Pré from DRV Corporate Finance,” Cleophas recalls. “After a few in-depth conversations, I knew: this is the right person to guide the sale. We clicked, and that’s crucial. After all, he would be the one negotiating with the potential buyer after the due diligence.”
Cleophas stresses that you shouldn’t try to handle those negotiations yourself. “A due diligence process always uncovers something that can be used to lower the purchase price. Plus, the buyer often tries to include the cost of the due diligence in the price. You need to stand firm.”
"}},{"componentType":"sectionTitle","title":"Entrepreneurship beyond the sale"},{"componentType":"paragraph","richBody":{"value":"Although there was plenty of capital in the market and high bids were made, Cleophas and his two fellow directors, who held stakes of 7.5 and 10 percent respectively, deliberately chose not to go with the highest bidder.
“Each of us wrote down a minimum price and locked it away. That was the amount we’d be happy and content with. We didn’t want to squeeze out every last euro. It was important that Magnum Heating could continue to grow. The new owner had to be willing to keep investing in the company’s future. To underscore that trust, I took a stake in the new structure. As a silent partner, I offer support when needed, in the form of advice and lobbying. The company is in my blood, after all.”
Cleophas looks back on two intense years, which he describes as “tropical years.” “During a sales process like that, the business still has to keep running, of course.”
"},"alignedImage":{"position":"left"}},{"componentType":"paragraph","richBody":{"value":"Fortunately, he didn’t have to do it alone.
“At the start of the process, Ronald Verhaard advised me to approach it without emotion. See it as a purely business transaction. His other piece of advice was to stay active afterwards. That’s why I’ve taken a stake in another company, among other things. As an entrepreneur, I’ve gained a lot of knowledge and experience, and I’m happy to share that with others who can benefit from it.”