HomeResearch & Knowledgeback to HomeEntrepreneurshipback to Research & KnowledgeEntrepreneurship through acquisition: Sébastien Perroud and the IAR Groupback to Entrepreneurship

Case Study

Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group

By Benoit F. Leleux, Dominik Hanslin, Iuliia Mordacheva, Matthias Rey and Frank Schuster

16 pages

November 2024

Order this case study

Reference: IMD-7-2515

GENEVA (SWITZERLAND), AUGUST 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.

Learning Objective

What is a search fund and what are its purposes?
How to conduct a professional search for a company to acquire?
How to develop a convincing business case for a buy-and-build acquisition strategy?

Keywords

Entrepreneurship, Finance, Strategy, Search Fund, Acquisition, Buyout, Small and Medium-sized Enterprise, Mergers and Acquisitions, Private Equity

Settings

IAR Group, Finance and Insurance, Private Equity
2020-2023

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Are stakeholders making or breaking your strategy?

An easy-to-use tool can help executives assess and manage the impact of stakeholders on the creation and destruction of value.

Stakeholder Management Strategy

By Paul Strebel, Angeliki Papasava and Patrick Reinmoeller

in I by IMD

Article

Navigating Luxury’s New Reality - Krug - Manuel Reman

CEO Manuel Reman blends Krug's tradition with innovation, fostering deeper connections with global audiences and emphasizing authenticity to keep the champagne house relevant amid shifting tastes and sustainability challenges.

Leadership Luxury Strategy Sustainability Innovation

By Stéphane J. G. Girod

in I by IMD

30 January 2025

Article

Think AI is a useful ‘copilot’? Soon it will take the controls

The implications of generative AI for "knowledge" work are more profound than many of us might think. Organizations need to wake up.

Strategy Artificial Intelligence Technology Management Leadership

By Michael Yaziji

in I by IMD

30 January 2025

Article

AI and the future of finance: How CFOs can navigate diverging regulations and workforce transformation

AI is revolutionizing finance, boosting productivity and insights, but CFOs must invest in infrastructure, navigate regulations, and upskill teams for a successful future.

Artificial Intelligence Decision Making Finance Innovation

By Arturo Bris

in I by IMD

Article

Keep an eye on marketing if you want to avoid a car crash - Su-Mei ThompsonI by IMD

As campaign disasters at Apple, Bud Light, and Jaguar demonstrate, boards shy away from marketing oversight at their peril.

Strategy Marketing

By Su-Mei Thompson

in I by IMD

28 January 2025

Article

Do you know the four As of cultivating strategic thinking?

Being able to think strategically is key to addressing the ever-increasing demands on leaders – but it's easier said than done. Here are four key capabilities that will help you succeed in turbulent times.

Strategy

By Tania Lennon

in I by IMD Brain Circuits

28 January 2025

Case Study

China Resources Beer: Becoming future ready

China Digital Human Resources Strategy Diversity and Equity and Inclusion

By Mark J. Greeven and Wei Wei

Case Study

Sea2see: Seastainable vision

Entrepreneurship Family Business General Management Global Business Marketing Sustainability

By Benoit F. Leleux and Thomas Brochier

Case Study

DIDA: Becoming a world leader in IT infrastructure

Strategy General Management Digital Disruption

By Patrick Reinmoeller

Navigating Luxury’s New Reality - Krug - Manuel Reman

By Stéphane J. G. Girod
in I by IMD 30 January 2025

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Luxury

Strategy

Sustainability

Innovation

Browse all topics

Think AI is a useful ‘copilot’? Soon it will take the controls

By Michael Yaziji
in I by IMD 30 January 2025

Summary

The implications of generative AI for "knowledge" work are more profound than many of us might think. Organizations need to wake up.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Artificial Intelligence

Technology Management

Leadership

Browse all topics

AI and the future of finance: How CFOs can navigate diverging regulations and workforce transformation

By Arturo Bris
in I by IMD

Summary

AI is revolutionizing finance, boosting productivity and insights, but CFOs must invest in infrastructure, navigate regulations, and upskill teams for a successful future.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Decision Making

Finance

Innovation

Browse all topics

China Resources Beer: Becoming future ready

By Mark J. Greeven and Wei Wei
Case reference: IMD-7-2538 ©2024

Summary

The China Resources Beer (CR Beer) case study is a compelling narrative of the world’s largest beer producer by volume under the leadership of CEO Hou Xiaohai. In 2016 CR Beer embarked on a pivotal transformation journey. This case study offers critical insights that particularly resonate with Chinese corporations navigating similar challenges in an era marking the end of China’s rapid economic growth. Faced with industry saturation, changing consumer behaviors, the rise of digital technology and the imperative shift from expansive to high-quality growth, CR Beer’s story mirrors the predicament in which many Chinese companies find themselves today. The case delves into CR Beer’s strategic overhaul, how it optimized its vast 60,000-employee structure, streamlined operations and embraced digital transformation to remain competitive. CR Beer’s transformation was characterized by tackling “three mountains” – operational inefficiency due to numerous small factories with high costs and low-capacity utilization, weak brand presence in the high-end beer market and an underutilized and mismatched workforce. The study also highlights the company’s innovative approach to rebranding for younger consumers, integrating consumer insights into product development and exploring new business models. It underscores the importance of internal cultural shifts to support these external changes and the role of leadership in guiding transformation. CR Beer’s journey from traditional efficiency to future-readiness offers valuable lessons in managing large-scale organizational change, strategic management and business innovation. It provides essential insights for understanding the complexities of transformation in a rapidly evolving industry, making it a crucial read for those interested in organizational change, particularly in the context of the Chinese market and its unique challenges and opportunities.

Reference IMD-7-2538

Organization China Resources Beer

Industry Consumer Goods, Food and Beverage

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

China

Digital

Human Resources

Strategy

Diversity and Equity and Inclusion

Browse all topics

Sea2see: Seastainable vision

By Benoit F. Leleux and Thomas Brochier
Case reference: IMD-7-2564 ©2024

Summary

BARCELONA, JANUARY 2023. What started in 2016 as a humble entrepreneurial attempt to contribute to a more sustainable future had turned into a solid eyewear brand present in major Western markets. François van den Abeele was even more excited by the rapid development of the Sea2see Foundation, which he set up in Ghana. But success brought its own new questions and issues. From the start, he had relied on the superb craftmanship and dedication of an Italian frame manufacturer. Over time that relationship had turned into a mutual dependency: He was now one of its major clients but, reciprocally, had developed a key supplier risk. What if something happened to that relationship? Should he develop a broader set of suppliers and, if so, how could that be done without antagonizing a great working relationship? Recycling very much set the stage for the brand’s sustainability claims, but it also took massive amounts of time to manage. As other companies started to develop their own fishing net recycling supply chains, did it still make sense to invest so much time in the upstream phase or should he pour his energy into his beloved brand? Finally, maybe it was also time to revisit the growth/profitability dilemma and open up the capital to increase the speed of growth, all for the benefit of the environment as impact fed on scale.

Reference IMD-7-2564

Organization Sea2see

Industry Consumer Goods, Optical Products

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Family Business

General Management

Global Business

Marketing

Sustainability

Browse all topics

DIDA: Becoming a world leader in IT infrastructure

By Patrick Reinmoeller
Case reference: IMD-7-2547 ©2024

Summary

Five friends created DIDA in 1983 and turned it into a global provider of IT infrastructure and services. Riding the wave of rapid growth of communication networks and increasingly global business relationships of corporations, DIDA established its brand through its strong alignment with dominant infrastructure companies such as Cisco and Microsoft. Navigating the end of the internet bubble, DIDA served as a major reseller of these companies’ products, adding value with its integration services by increasing its clients’ efficiency and enabling collaboration within corporate networks. By 2005 DIDA had resumed rapid growth through partnerships, equity-based alliances and, most prominently, acquisitions, which led to a network of subsidiaries in more than 50 countries and six continents. By the end of 2009, DIDA had shown its critics that it could grow and integrate. However, its revenue was growing faster than its profits and it was not poised to help corporations move to the next generation of internet technology which would require new capabilities for installing and managing large data centers for computing as a service (CaaS) and cloud computing. The case ends with DIDA’s CEO reviewing the prospects of shrinking core markets and displacement by technological disruption. He acknowledges the need to make choices and get ahead of technological trends again in a changing IT infrastructure landscape. DIDA could seek to further grow its core business or internalize new capabilities to get ready for a CaaS future. Should DIDA seek more profitable growth organically or through acquisitions?

Reference IMD-7-2547

Organization DIDA (Disguised)

Industry Services, Telecommunications

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

General Management

Digital

Disruption

Browse all topics