As a lawyer-partner at Blenheim Advocaten, Arjen Paardekooper has supervised more than three hundred acquisitions over the past fifteen years. In his office on the IJ, the corporate law specialist provides a fascinating insight into his work. “We participated in the Aramco transaction, which involved an amount of 74 billion. But we also sell the snack bar around the corner.”
As a lawyer-partner at Blenheim Advocaten, Arjen Paardekooper has supervised more than three hundred acquisitions over the past fifteen years. In his office on the IJ, the corporate law specialist provides a fascinating insight into his work. “We participated in the Aramco transaction, which involved an amount of 74 billion. But we also sell the snack bar around the corner.”
Text: Bart-Jan Brouwer
Image: John van Helvert
Why did you choose the legal profession?
“As a twelve-year-old child, I saw a television series in which a classic English lawyer, complete with a white wig, appeared in court. Then I knew: I want that too! I started in 1996 and for many years my specialty was clearing squats. I could do that until I got married and had children. I was so threatened that I had to choose another profession. The left-wing extremist action group RaRa was after me: I was chased, waited for at my house, the windows were smashed with paint bombs. Then I became a lawyer for stock traders, market-makers, the really big boys in this market. I did that for a number of years until the screen trading took over from the floor trading in 2008. That was also the time when we were selling our family business, a book printing and binding company. I never had any intention of continuing that, because – as my father said – it was one sunset business. I watched from the sidelines to see how that went. I found that so interesting that I increasingly took on acquisitions within our office.”
Whose interests are you representing in that position?
“I only act for salespeople, never for investment companies. Because I'm in it investment committee and sits on the supervisory board of the investment companies, I know how they think from the inside – I am their trump card. Because I have one corporate financebackground, as a lawyer I can look very closely at the commercial side of the transaction. Pricing and market valuations are a piece of cake for me. I have made four exits myself: the sale of four companies that I founded with partners. Including, in 2016, online broker Zecco, which was sold to First Ally for 280 million after a merger with TradeKing. There were a lot of investors, so don't think that a wealthy man is sitting in front of you.”
Please explain what exactly your task is as a lawyer in corporate law.
“My job is to translate this to the entrepreneur. I'm actually an interpreter and risk manager, nothing else. If you do this, that's the risk. What does risk acceptance depend on? From the price. I once bought a second-hand BMW from a dealer. With warranty it cost 80.000 euros, without warranty 10.000 euros less. That's how it works with companies too. At the highest bid in the market you must be prepared to accept more risks. I have now completed more than three hundred transactions, an average of between twenty and thirty on an annual basis.”
What kinds of things get you excited?
“From transactions that initially fail. Then I have to go to the farm again, negotiate again. The sale of the company IENS, the dining website of Iens Boswijk, to TripAdvisor was Champions League advocacy and deal making. On the other side of the table sat a deal team composed solely of Harvard and Stanford professionals with backgrounds at the largest investment banks, law firms and accounting firms. What made it extra exciting was that there were fourteen selling shareholders. On the one hand you manage the sale to an extremely professional buyer, on the other hand you also have to deal with the mutual relationships between the shareholders. And I believe that a transaction should always end in a party. It should be a party for everyone, both the seller and the buyer. There should be no bullshit. Out of three hundred transactions, I have had two arguments about the guarantees, one of which ended in court – and a win. With a few exceptions, there is never any hassle. You can only achieve this by listening very carefully in advance, researching your customer very carefully, identifying the risks yourself, and being open and honest with the buyer. The Dutch system also requires this. If you make a transaction under English law, you are allowed to lie like crazy: there are relatively few sanctions involved. In the Netherlands it is fatal if you do not tell the truth.”
Do you look for buyers or do they present themselves?
“I'm going to look for it, we hunt on buyers. My other company Hunt Corporate Finance emerged from that. That's just an extra service, one add-on. Sellers simply like to have one point of contact. This is very special in the Netherlands, but in countries such as Germany and England this has been the case for years. There is no law firm there that does not have its own deal-making department.”
Besides IENS, what are other top acquisitions you have made?
“A transaction that entered the books for only one euro, but in which I secured employment for three hundred people and saved the family honor. And I once sold a payroll company after a negotiation so masterful that the client treated us to the biggest party I've ever attended, with the most expensive wines I've ever drank in my life. In addition, our bill was doubled and everyone received a beautiful watch. I raffled mine among my team, because they did the work.”
You hold all kinds of positions, as can be read on the Blenheim website. Most notable: as a volunteer you regularly drive the local bus in your hometown of Laren. Tell.
“Every third Tuesday of the month. That's my Budget Day. The Brinkbus takes elderly and less mobile residents of Laren free of charge to the osteopath, the GP, the hospital in Blaricum... Regular customer is a blind man with whom I always go to the AH. On the third Tuesday of the month my phone is turned off and I cannot be reached. No matter how busy I am. Every time I say to my wife: 'I don't have time for this at all.' Then she says, "No, but when you get home you'll be happier than ever." She sees that I am happiest when I do non-commercial work, which sounds very strange for such a commercial guy.”
You could have done another job. Do you have something special with the fellow human being in need?
“I used to cook for the homeless in Amsterdam at the Sisters of Mother Theresa. I'm a very gifted cook, so I like to be behind the stove. And even have a food blog. A friend once asked me: 'What do you do for society without any monetary reward?' In our law firm we do not do additional cases, no pro bono. On the other hand, each of our lawyers is allowed to devote 10 percent of their time to charity. We consciously do not touch the budget for social advocacy, but we do. But I also think that you can make a difference locally. I raise my children with the message that they should do something selfless for someone else every day. In the evening I sometimes want to know what they have done for the other person, for example putting the neighbor's green bin on the street or raking a path. They also asked me that question once: 'What did you actually do?' I could still do something locally. When I saw that the Brinkbus was looking for drivers, I got in. There are so many lonely people! I often bring flowers for them and call the florist in advance. He immediately asks: 'Oh, is it that time again, the third Tuesday of the month?'”
MASTERS MAGAZINE #55
Curious about the rest of the interview? The magical autumn edition of MASTERS Magazine is now available. Artificial intelligence has now become an indispensable part of our lives. But, is this development something to celebrate or fear? Will Terminators take over or will friendly robots make our earthly existence even more comfortable? In this edition, AI is examined. According to philosopher Rowan Williams, it is important to remember that whatever AI does, it always imitates. And that we as humans distinguish ourselves through ingenuity. A good example is real estate entrepreneur André Snippe, who is developing an ultra-modern city district in Hoofddorp. Or nautical designer Jurjen Eerkens, who has developed a groundbreaking boat with his Hytender that is leading the way in making the yacht industry more sustainable. These and more resourceful entrepreneurs grace the pages of this edition. Which also looks ahead to MASTERS EXPO | The MAGICAL Edition, our exclusive business fair also born from ingenuity.
