VITA BANK
Sets let's move the world
Vita Banque SA has recognized know-how in helping senior executives to raise their company's capital. Testimony of Damien Martin, administrative and financial director of Babilou.
Can you start by introducing us to Babilou?
Created in 2003 by Rodolphe and Édouard Carle, Babilou took advantage of the opening up to the private market of the activities of nursery operators. Fourteen years later, the company operates 410 establishments, including more than 300 in France, which welcome approximately 20,000 children. It achieves a turnover of 250 million euros and employs more than 5,000 people. Although the Carle family is still the majority shareholder, Babilou's capital has gradually opened up to finance the company's strategic shifts.
Why did you carry out this capital-intensive operation last spring?
It corresponds to the entry into the capital of a new American investment fund, in addition to existing shareholders, to support our international development. At the same time, we negotiated the refinancing of our lines of credit and we took advantage of this to raise a few senior executives to the capital, in application of our incentive plan. It was the right time to retain them.
Vis-à-vis the executives, what was your role in this operation?
Upstream, I had discussions with the banks on the conditions, the rates and above all the guarantees linked to the loans that they could grant them to acquire these securities. As the plan was quite complex, people needed support to understand the main issues. They are not necessarily used to fine loans and tax issues that may arise. So I had an advisory role, to explain, inform, alert as well. I told them right away that I was offering them a solution but that it was up to them to decide: I couldn't answer for them on their ability to invest.
Guarantees… Was this an important point for you?
Yes, because I wanted to be able to offer a simple and easy to execute package. The banks in our pool are familiar with the company's file, they know that the risk is limited with us. I know that these young executives are at an age where you are considering buying your main residence. They may fear that this kind of operation will affect their borrowing capacity.
Have you consulted several banks to support them?
We have thirteen banks in our pool, including almost all French banks. We are used to being very responsive and agile, and we expect our partners to be too. Our banks are familiar with our mode of operation and have the ability to respond to us quickly. I like being told: "It's going to be complicated, but we're going to find solutions..." The whole operation was prepared in three months and the timing for the executives was less than a month.
“Having interlocutors who travel to our premises and who adapt to everyone's schedule was a very important point. It demonstrated their flexibility and closeness.”
“We chose Vita Banque for their responsiveness and the quality of their proposal”
Why did you choose Vita Bank?
The decision is linked to their responsiveness and the quality of their proposal. We have been working with Vita Banque des Entreprises since 2013, and they wanted to take this opportunity to increase their participation. They were the fastest: we were able to meet the Vita Bank experts very quickly and get the answers we were expecting. The fact that they mobilize advisers was also decisive. As I said, our executives are not familiar with these issues. So having contacts who come to our premises and who adapt to everyone's schedule was a very important point. This demonstrated their flexibility and closeness, and it also played a role in meeting deadlines.
Looking back, how do you judge the way this support was set up?
Everything went as planned, without any malfunction. The Vita Banque teams, and more particularly Achraf Ben Hamza, communicated a lot with me and that was important. It was necessary to be clear on what it was possible to do or not, to anticipate all the needs. Afterwards, I haven't heard of any problem at any level, so everything is going well.
For the record, we were also offered, my CEO and myself, full access to Vita Bank. This allows us to organize meetings with clients in a prestigious place in the heart of Paris, which is very valuable for a company like Babilou whose head office is in the inner suburbs.
"For customers, everything should be simple and fluid."
Achraf Ben Hamza, engineer in Vita Banque heritage financing, tells how she handled this file
“It was the Banque des Entreprises VITA BANQUE, then in negotiation for a new line of credit, that recommended us to Babilou. Setting up an Investment Manager Solution means offering to finance the acquisition of unlisted securities by executives. These are personal loans assigned to a specific object agreed with the company. We must therefore validate three main points with it: define a credit granting policy common to all those concerned, agree on a guarantee policy and, finally, agree on the pricing conditions - rates, fees file and review, account maintenance fees… Damien Martin wanted the least restrictive guarantees possible. We quickly understood that this was a decisive point and I had good arguments to defend the file internally: Babilou is a good signature and above all there was a big stake for the Business Bank. We really worked together hand in hand.
One of the difficulties here was the very reduced timing. However, there are incompressible legal deadlines for personal loans. This is what led me to propose “Marathon Days”: a schedule of appointments with interested parties on their premises. In total, 7 advisors from 5 Vita Banque divisions got together to conduct 13 individual interviews over two days and finalize 11 files.
If everything, in the definition of the solution, is common, the support provided to the beneficiaries is personal. It is on two levels. First, consideration of each financial situation, and then, technical support: account opening, setting up the financing file, release of funds, eligibility and registration of securities in the PEA, transfer of funds to a pivot account, follow-up of guarantees… We are facilitators: we control everything so that customers are not subject to any risks. For them, everything should be simple and fluid.
In this type of operation, the objective for us is to establish a long-term relationship of trust. These are already good profiles and, even if anything related to unlisted securities is risky by nature, they present great potential with the prospect of a very significant cash outflow.”
Lexicon
- Loan in fine: loan whose capital is repaid in one installment at maturity
- PEA: equity savings plan
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