Interview – Jean-Baptiste David, Widoowin

DEALCOCKPIT: Could you introduce yourself?

Jean-Baptiste David: I am Jean-Baptiste David, president of Widoowin Corporate Finance, where I primarily focus on Mergers & Acquisitions (M&A). Widoowin is a financial advisory group founded in 2009 with my partner, Mario Da Silva. We started as a team of two, but have since grown to 35 employees and opened offices in five cities: Bordeaux, Nantes, Paris, Lyon, and Hong Kong.

DC: What was your career path before launching Widoowin?

Jean-Baptiste D.: I worked in asset management at companies such as Rothschild, DNCA, and La Française. I was responsible for marketing investment funds through various intermediary networks, including wealth management advisors, private banks, and institutional investors. After gaining experience, I partnered with one of my clients, Mario, to bring our vision to life and grow Widoowin.

DC: How is Widoowin different from other advisory firms?

Jean-Baptiste D.: We assist companies with revenues between €5M and €100M across all sectors. The main challenge in M&A, especially as an independent firm, is the constant need to source new clients. To address this, we developed what we call the independent investment bank, with a B2B2C model rather than a direct B2C approach. This means we don't seek clients directly but work with partners who bring us deals through their networks. We've built our model around a network of business introducers, including wealth management advisors, family offices, and accountants. Having worked in fund marketing, I’m very familiar with this type of intermediation. We adapted the model for M&A, which was unique at the time. Today, we have around 300 partners who regularly send us clients.

DC: How do your partners benefit from this approach?

Jean-Baptiste D.: Our independent investment bank concept provides Partners with additional services for their clients, generating extra revenue as we offer 30% of our fees per transaction they bring. After the deal, they continue to benefit. For instance, after a sale, business owners often need wealth managers to reinvest their capital, accountants to conduct audits, or insurers to review insurance policies.

DC: You advise companies on financial strategies. Could you explain the different aspects of your support?

Jean-Baptiste D.: We manage about 15 transactions per year, primarily assisting with business sales. The process starts with creating a Data Room using DealCockpit, followed by a thorough financial analysis to structure and clarify the company’s data. We then handle information restatement to assess future profitability potential and prepare an information memorandum. After drafting a teaser and having all documentation approved by our clients, we begin searching for investors.

The goal is to find buyers, whether for minority or majority stakes, depending on our client’s project. We then put potential buyers in competition to select the best offer—not just in terms of price but also conditions and the overall project. Three key elements are crucial: price, conditions attached to the price, and the buyer’s intentions. It's not the same if a buyer wants to maintain continuity in the company or if they're only interested in certain assets while liquidating the rest.

DC: How do you source your partners and investors for your clients?

Jean-Baptiste D.: Sourcing at Widoowin is unique. We have a dedicated team that manages our Partners' network, informing them about our completed deals and teaching them how to discuss M&A with non-initiated clients. This team is also responsible for identifying opportunities, securing deals, and obtaining exclusive mandates.

Then we have the M&A team, which steps in to execute sale and LBO missions. This entire process, from sourcing to closing the deal, is managed through a SaaS tool we developed called M&A System™. Each of our Partners has access to this tool. After signing an agreement with us, they can securely share potential deals. If a deal is brought to us by a partner, we quickly analyze it, qualify the information, and determine if it fits our scope. If it's a deal we’re willing to support, we’ll meet the client through the intermediary acting as a trusted third party and offer them our support.

DC: You support companies in France and Hong Kong. Are there differences in your approach based on the country?

Jean-Baptiste D.: We have an office in Hong Kong, led by our partner Laurent Dorpe, former CEO of Edmond Rothschild. However, we don’t heavily invest in developing in Asia, as we primarily focus our resources on France. We mainly handle French transactions, though we recently sold a company for around €35M to a New Caledonian business. We can manage cross-border transactions, but Asia is a different landscape. For instance, while working for an EDF subsidiary with a joint venture in Asia, we realized the importance of speaking the local language, being on-site, and understanding cultural nuances.

Laurent’s long-standing presence in Asia, having lived in Shanghai and now Hong Kong for 20 years, is a major asset. We've carried out a few missions there, notably in MedTech, but the Hong Kong office mainly handles international projects for now.

DC: Speaking of MedTech, are there specific sectors you’d like to develop in the coming years?

Jean-Baptiste D.: We work closely with service companies, particularly in transport and industry. Our priority remains established businesses with proven, profitable business models, typically with 20-30% gross margins. We are open to working in all sectors, without restrictions.

DC: The market is particularly tense at the moment. What trends do you foresee for Q4 2024?

Jean-Baptiste D.: There will always be interest in deals, despite successive crises and the uncertainties business leaders face. They're used to it, and I don’t think that will change, especially with France's political instability. Interest rates rose but are now falling, indicating that these fluctuations have been absorbed. When rates were rising, it was hard to plan. Now that they’re dropping, business owners feel they’ve peaked and must adapt to the uncertainty ahead.

2023 was challenging due to geopolitical factors, rising rates, and inflation, which paralyzed many players. But once the situation stabilized, executives felt the need to move forward. They must sell, grow, or consider acquisitions; otherwise, they risk stagnation. After this period of stagnation and observation, I believe many are ready to take action again.

DC: In this decisive phase, how can transaction processes be optimized, and what role does technology play?

Jean-Baptiste D.: Technology is central to our processes. That’s why we developed M&A System™ and work with DealCockpit. These tools are essential for saving time and staying organized. M&A System™ tracks all our deals, ensuring organized and structured information.

M&A is an information-driven field, yet it remains under-digitalized. In M&A System™, we manage various profiles, including sellers and buyers. For buyers, we track interests, whether they’re individuals or strategic investors, who are our most important contacts. We place great importance on data, leading us to build an in-house data team of four, which significantly saves time.

DC: You mentioned data rooms and DealCockpit. Why did you choose to work with us?

Jean-Baptiste D.: We developed an internal data room system, but it had its limitations. With the growing number of deals and partners, we needed a more robust tool. Our previous solution was too basic for our clients. We also needed a tool that allowed our team to monitor deals daily.

On one hand, I received a serious, structured, and independent offer. On the other hand, we had a great connection with Fiona, who gave us the demo. We're based in Bordeaux, so everything was seamless. The fact that it’s a French solution is definitely a bonus.

DC: I like to take the opportunity during conversations like this to ask for feedback. Is there anything we could improve?

Jean-Baptiste D.: I’m not the primary user of DealCockpit, so I’d need to poll the team, but so far, it’s doing the job well.

DC: One last question – based on current market trends, what advice would you give companies looking to strengthen their position?

Jean-Baptiste D.: We’re in a world that’s centralizing, meaning that sectors tend to consolidate. There’s a race for scale, and it's tough to stay competitive if you’re too small. Once a company reaches a certain size—€10M to €20M in revenue—it’s essential to reflect on strategy: how to be more efficient, integrate more margin, and develop new skills. External growth can help, though it’s not mandatory. Many large groups have built their success through consolidation, acquiring companies and integrating new expertise and business.

Many quality companies will be up for sale in the coming years, providing great opportunities. However, to avoid wasting time, it’s crucial to be well-supported by serious M&A firms. I may be biased, but it’s best to consult your wealth manager or family office. Visit Widoowin Corporate Finance—we have companies for sale or can help you sell yours.