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Founded in 2005, Largillière Finance is an independent investment bank based in Paris, Lyon, Brussels and Geneva. Its main mission is to carry out capital transactions for its customers: managers, shareholders and investors of major groups, ETIs and SMEs. With Paul Bougnoux, founder of Largillière Finance, we focus on the many challenges facing the sector.

Could you tell us about Largillière Finance?

With over 15 years' experience, Largillière Finance has become one of France's leading investment banks. As a leader in the small and mid-cap segment, we advise our customers on divestments, acquisitions, fund-raising, strategic consulting and financial engineering. By bringing a global 360° vision to the management of small and mid-cap companies, we provide them with the tools they need to meet their long-term strategic goals and perspectives. As architects of the transaction, we accompany our customers from the first stages of their strategic thinking right through to the end of the transaction, when the company is actually sold. A merchant bank with impeccable professional ethics and working methods, Largillière Finance is made up of 32 professionals.

What are the challenges facing your industry?

There are a number of challenges. First of all, we have an obligation of excellence to our customers. The increasing complexity of our operations means that our expertise, upstream analysis and execution capacity must be extremely solid. At Largillière Finance, we see this duty of excellence as a motivating factor, and it drives us to be at the cutting edge of new technologies.

Which brings me to the second challenge, that of digitizing our processes by strengthening the digital tools at the service of both our customers and our teams. Every year, we invest in databases, new digital resources and sectoral analyses in order to offer our customers the best possible service, while at the same time enhancing the performance of our employees. It is therefore essential to have a well-trained and solid team, supported by the effectiveness of these tools.

There are still many concerns in the business world about the recession in M&A transactions. What are you seeing at Largillière Finance?

Indeed, the economic press reports a slowdown or even a halt in M&A operations and business transfers. And while in times of economic uncertainty, companies may hesitate to undertake major transactions, this is not what we observe at Largillière Finance. In our experience, the operations discussed in the economic press mainly concern transactions by large CAC 40 and SBF 120 groups. On the other hand, in the world of mid-cap companies and SMEs, the volume of operations remains very high, despite geopolitical concerns, a return of inflation and the increase in interest rates. It is important to emphasize that valuations, even if they have fallen, remain favorable to the completion of operations until success. Thus, financial conditions remain very attractive for sellers.

This realistic speech is not only intended to reassure managers, but also to illustrate our daily lives. At the heart of the ecosystem of mid-cap companies and SMEs, present both regionally and internationally, alongside companies and private equity investment funds, Largillière Finance has a panoramic vision allowing us to assess the current situation. Moreover, our figures illustrate this trend. Since the beginning of the year, we have carried out around fifteen transactions in line with our usual volume. Companies demonstrating resilience, supported by quality management, obtain excellent valuations.

Why has your role become essential to the completion of capital transactions?

We are convinced of the essential nature of our participation in the completion of capital transactions for several reasons. A manager and his management do not have the time to manage a transfer, acquisition or LBO process. For our part, we take care of all the time-consuming but necessary steps to complete a transaction.

The manager must have a clear mind to arbitrate the offers he receives. Today, even competent companies such as investment funds are largely supported by investment banks. Our profession requires specific tools and in-depth expertise. Finally, in a context of tougher negotiations and special attention from buyers and lending bankers, it is essential to be supported by an investment bank accustomed to this exercise. This support allows the manager to receive informed advice throughout the process.

What is the DNA of your investment bank?

What differentiates our approach is the proximity we maintain with our clients and our employees. Taking into account the human dimension at all levels makes Largillière Finance a trusted partner. First, within our offices, our teams work together according to a unique methodology based on collaboration. On the other hand, for a transaction to be successful, it is essential to verify three elements: market conditions, the intrinsic and endogenous situation of the company, and our client's personal and family project. The alignment between these three planets is essential to the success of any capital transaction. Our role is therefore to be very attentive. Our work, upstream, allows us to create our own conviction and to understand the best interests of our clients. Transparency and benevolence are values ​​that characterize our daily commitments.

You have just supported a Family Group in the sale of one of its subsidiaries, can you tell us a bit about it?

Absolutely, Maison Boinaud, a spirits producer since the 17th century in the heart of the Grande Champagne region, owned and managed by the 24th generation, has just sold its subsidiary Biossent to TFF Group. Biossent, created in 1989, extracts active ingredients from oak wood and vines for the aging of wines and spirits. Wishing to refocus on the spirits sector, Maison Boinaud wanted to transfer Biossent to a player capable of making the most of its assets. Largillière Finance was therefore mandated to find the rare pearl. TFF Group is the world leader in the design, production and marketing of oak barrels intended for the production of high-end wine and the aging of alcohol. An ideal candidate, the acquisition of Biossent strengthens TFF Group's positioning in the dynamic sector of wood products for oenology. I will conclude by saying that Largillière Finance's mission is to support Family Groups and their shareholders in both their thinking and their strategic operations. In this respect, the Maison Boinaud-TFF Group transaction, which creates value for all parties, fits perfectly into the bank's DNA and its know-how: long-term support for entrepreneurs and shareholders of mid-cap companies and SMEs.