Wagram Equity Partners
Joost Rijper
Sale of Edelman and Euro-Decor to Wagram and management
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appreciation has led to three further successful transactions,
all involving sister companies Euro-Decor and Edelman.
There is always more than one truth, but the value a
company has to me dictates the price I'm willing to
pay. And that price will vary very little
In 2002, their French mother Pollyconcept sought to dispose of
its two Dutch subsidiaries involved in home and retail decoration.
Rijper calls them `great trading companies', with a good collection,
great contacts in China and a European-wide sales base. But after
their results suddenly dropped, it took some time before the own-
ers found Rijper's offer acceptable. `There is always more than one
truth, but the value a company has to me dictates the price I'm will-
ing to pay. And that price will vary little. 'Rijper had drawn his line
in t he sand, when at 4am the last details still had to be hammered
outatlawfirmHouthoffBuruma.`Therewereacoupleofthings
which simply made no sense. I was right, but the French just kept
on humming and hawing. There came a point where I thought `this
is going nowhere, it just isn't fair'. Finally, I walked away.'
Underpressure,everythingbecomesfluid.Inmanymergersand
acquisitionsthislawofnatureisusedtoextendfinalnegotiations
well into the night. In view of the number of deals that get closed
at those hours, this tactic seems to be very effective. This may
be true for many cases, but not for Joost Rijper. `Me, a tough
negotiator?IthinkI'mfairlyflexible.Iwillgoalongwithgood
reasoning. But the logic must be sound.'
If we like what we see, we're ready to invest
Unlike others
In 1996, Rijper and some private investors launched Wagram
Equity Partners. `Apart from the regular management buy-outs,
we also perform turnarounds. This is what sets us apart from
most other investors. We go beyond spreadsheets and have a
good look at the people who actually make a difference in a
company. If we like what we see, we're ready to invest.'
This was the approach Holland Corporate Finance was looking for
in 2000, when they came knocking on Rijper's door with Zwart,
thenaprinterofcoffeeandteapackaging.Ithadn'tmadeaprofit
in years and really needed some new inward investment: not
exactlyaprimeoffer.Nevertheless,somefiveweekslaterthe
deal was a fact. Zwart has been doing well ever since. All those
years have gone by without any dividend or discussion of an exit
strategy. `Providing the company keeps growing, we are in no
hurry. Currently we are building up a lot of value in the company.
You make these investments for your own indulgence, I enjoy
watching companies develop and grow.'
The meaning of value
After the transaction with Zwart, Rijper and Holland Corporate
Finance learned exactly what to expect of each other. `I can
quickly assess a company and determine its real value to me.
Ifindtheirstrengthalsoliesintheabilitytoobtainatransparent
view of a company, determining what the realistic price range
should be, and in finding a buyer who fits in.' This mutual
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