Iberian M&A and

Private Equity Forum

Post-event report
15 June 2010 | Westin Palace | Madrid

www.mergermarket.com/events

Lead strategic partners: Strategic partners: Communication partners:

Keynote: Outlook for
Business in Spain

Luis de Guindos, Former Secretary of State for Finance;

Director, IE Centre for Finance

Juan Rivera, Senior Director of Llorente & Cuenca, welcomed

attendees to mergermarket’s Iberian M&A and Private Equity
Forum in the Westin Palace, Madrid. He introduced the keynote
speaker, Luis de Guindos, who is currently a Director of IE Centre
for Finance.
The economist, who was a minister for the Popular Party (PP) He said the collapse of the construction market and an inflexible
before the Socialists gained power, said that public finances labour market are the main villains. De Guindos welcomed the
remain weak. He said that the main risk facing Spain is a ‘vicious government’s decision to cut the public deficit to 3% by 2013 from
cycle’, as markets increase the cost of financing to the point 9.3% this year, he went on to say that Spain has conquered crises
that the debt cannot be financed, leading to a bailout. Even if the in the past and this recent situation will be no different.
country does not reach that point, competitiveness is declining and
a huge number of jobs have been destroyed.

Panel: Corporate M&A in Spain

Ignacio Aranguren, Chief Strategy Officer, NH Hoteles
Marcos Íñiguez, Director of Business Development and M&A, Indra
Pablo Blanco Juárez, Corporate Strategy Director, Prosegur
José Antonio de Tomás, Head of Corporate Finance,
Santander Global Banking & Markets
Fernando Torrente, Partner, Cuatrecasas, Gonçalves Pereira (moderator)

The opening panel, which focused on corporate M&A, was

moderated by Fernando Torrente, a Partner with Cuatrecasas,
Gonçalves Pereira. Ignacio Aranguren, the Chief Strategy Officer
of NH Hoteles, said that the hotel company has been hit hard by
the financial crisis. He explained that the company now prioritised
debt reduction. A new model for future deals which illustrates
this debt reduction strategy has come off the back of the recent
Hesperia deal, which focused on managing assets rather than
buying property. He added that joint ventures are becoming
increasingly common in the sector.
Meanwhile, Marcos Íñiguez, Indra’s Director of Business
Development and M&A, revealed that the technology company
would look to continue to grow through acquisitions. He said that
Indra will focus on deals that improve profitability, adding that
cash-flow is highly important, as is attracting talent. Pablo Blanco
Juárez, Corporate Strategy Director of Prosegur, continued this
theme, stating that the highly acquisitive security company would
continue to look for bolt-on deals in the current fragmented
market and that it will focus on small deals in overseas markets
where it is already present, particularly in Latin America.
José Antonio de Tomás, Santander Global Banking & Markets’
Head of Corporate Finance, commented that the M&A market is a
global one rather than a local one, but that clients are being more
prudent when it comes to entering new markets, given that these
deals require a greater commitment in terms of research and
financing more lawyers.
Iberian M&A and Private Equity Forum 2
Panel: Acquisition Finance
Gonzalo Zurita, Managing Director, Nomura
Pablo Urgoiti, Head of European Loans, Santander Global Banking & Markets
Arturo Alonso, Managing Director, Head of Global Finance Iberia, Societe Generale
Luigi Bartone, Investment Director, Intermediate Capital Group
Iñaki Miguel, Financial Correspondent – Spain, mergermarket (moderator)

After a short networking break, Iñaki Miguel, a Financial Gonzalo Zurita, Nomura’s Managing Director, concluded the
Correspondent with mergermarket, led a panel on financing discussion, stating that banks have to innovate now to be able to
acquisitions. Pablo Urgoiti, Santander Global Banking & Markets’ finance acquisitions. He highlighted a recent US deal by Grifols
Head of European Loans, said that banks are queuing up to lend as an example. The blood-plasma products specialist will issue
money to Telefonica, which has launched an aggressive takeover of shares without voting rights as part of the deal financing.
Vivo in Brazil.
The discussion continued with Luigi Bartone, Investment Director
of Intermediate Capital Group, mentioning that private equity funds
still have enormous liquidity, despite the lack of deals in the sector
and that funds will need to put more equity in leveraged buyouts
(LBOs) going forwards. On this point, Arturo Alonso, Societe
Generale’s Head of Global Finance for Iberia, noted that there are
only around 15 banks that are able to fund LBOs.

Panel: Opportunities
in Infrastructure

Francisco Javier Falces, COO, Globalvia

Joao Simao, Head of Financial Sponsors Group, Santander Global Banking & Markets
Fernando Bernad, Partner, Cuatrecasas, Gonçalves Pereira
Rupert Cocke, Bureau Chief – Spain, mergermarket (moderator)

The forum continued with mergermarket’s Spanish bureau

chief, Rupert Cocke, leading a debate on opportunities in the
Infrastructure market.
The discussion began with Francisco Javier Falces, COO of
Globalvia, stating that the Spanish government needs to privatise
infrastructure companies, such as Renfe, ADIF and Aena, in order
to continue market development. He also said that pension funds
could enter the market directly.
Fernando Bernad, a Partner with Cuatrecasas, Gonçalves Pereira
who specialises in project finance, said that the financing model
needs to change and that infrastructure projects could potentially
issue bonds in the future as a new source of financing.
The discussion continued with Joao Simao, Santander Global
Banking & Markets’ Head of Financial Sponsors Group, stating
that although infrastructure funds are still very young, they
have already begun to be serious players in the market. Simao
suggested that these funds would be very interested in Spain,
despite there being few deals, because of the gap between prices
and risk premiums.

Iberian M&A and Private Equity Forum 3

Presentation: Real Estate in Focus
Adolfo Ramírez-Escudero, Executive Managing Director Capital Markets, CB Richard Ellis

Adolfo Ramírez-Escudero, Executive Managing Director of Capital

Markets for CB Richard Ellis, was next to take the podium at the
Iberian forum to discuss the developments in the Real Estate sector.
Ramírez-Escudero began by noting that some people see the
Spanish property market as being a glass half-full, while others
see it as half-empty. Following the recent collapse in the sector,
there is still excess capacity and banks have begun to enter as
co-promoters. He said that efficiency measures, such as sale and
leasebacks, as well as property spin offs, are becoming increasingly
important and concluded by stipulating that property deals can
bring extra profits to M&A, adding that it is important to conduct
property due diligence alongside conventional due diligence.

Panel: Portfolio
Management & Turnaround
Carmina Ganyet Cirera, Corporate Managing Director, Inmobiliaria Colonial S.A
Emilio Castagna, Director, Improven
Javier Mata, Zóbelton
Alexander Wit, Partner, PHI Industrial
Rupert Cocke, Bureau Chief – Spain, mergermarket (moderator)

Beginning this panel, Emilio Magnasco, Projects Director with

Improven, said that when companies are in crisis, it is important to
be agile enough to make quick decisions. Javier Mata, an executive
with Zóbelton, said that it is sometimes worthwhile calling in an
interim manager to make the tough decisions, to give an unbiased
opinion when the owners are too close to the business.
During the course of the discussion, Alexander Wit, a Partner
with PHI Industrial, said that selling the business is an alternative
to restructuring, but said that in these cases it is important to
make very quick decisions and start the sale process as early as
possible. Carmina Ganyet Cirera, Inmobiliaria Colonial’s Corporate
Managing Director, said that the property company was able to
successfully restructure because of a collegiate atmosphere
involving all the stakeholders. Even so, she said the process was
still painful and difficult at times.

Iberian M&A and Private Equity Forum 4

Panel: Private Equity
Ramón Cerdeiras, Partner, Ibersuizas
Carlos Mallo, Partner, Permira
Jesús González Nieto-Marquez, Business Development Director, Bolsas y Mercados Españoles
Eduard Saura, Managing Partner, Accuracy
Alex Wagenberg, Managing Director, The Carlyle Group
Victor Xercavins, Partner, Cuatrecasas, Gonçalves Pereira
Iñaki Miguel, Financial Correspondent – Spain, mergermarket (moderator)

mergermarket’s Iñaki Miguel led the final debate of the Eduard Saura, a Partner with Accuracy, indicated that advisers
day about private equity. Alex Wagenberg, Partner with should focus on giving comfort on the business plan rather than
The Carlyle Group, stated that secondary buyouts (SBOs) on historical figures, given the current uncertainty and volatility in
are now coming into focus for exits. He also said that big the markets. Finally, Victor Xercavins, a Partner with Cuatrecasas,
companies should return to their core business, as this Gonçalves Pereira, concluded by saying that he is optimistic that
will create opportunities for private equity funds. private equity funds will be able to buy non-core divisions from
During the discussion, Carlos Mallo, a Partner with large companies going forwards.
Permira, pointed out that a good asset can always be sold.
Ramón Cerdeiras, a Partner with Ibersuizas, said that all the
traditional exit strategies are still possible, although IPOs are
still difficult.
According to Jesús González Nieto-Marquez, Business
Development Director of Bolsas y Mercados Españoles (BME),
there are windows of opportunity for IPOs, but that they can close
quickly, and that BME’s new Alternative Stock Market is a good
option for smaller exits.

Iberian M&A and Private Equity Forum 5

“Iberian M&A Law Firm of the Year “The top quality service at Cuatrecasas,
Gonçalves Pereira exceeds expectations”
2008 and 2009” (European Legal 500, 2010)

(Mergermarket-Financial Times)
“The firm has been present on many of the
market’s headline M&A deals”
The Cuatrecasas, Gonçalves Pereira M&A and Private (Chambers, 2010)
Equity Group comprises over 150 lawyers with
extensive experience advising Spanish, Portuguese “Perfect service that’s always on time”
“Dynamic, proactive and
and international companies on the largest and most superbly well-prepared team”
complex transactions of acquisition processes. (European Legal 500, 2010)

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CEE M&A and Private Equity Forum 2010