The Complex World of Corporate Finance: An In-Depth Interview with Dick Boer, Co-Head of Investment Banking at Van Lanschot Kempen

In the world of Investment Banking, everything revolves around closing major deals, advising companies on mergers and acquisitions (M&A), and navigating through intricate financial structures. Known for its significant influence on the global economy, this industry often appears as a closed and impenetrable domain to outsiders. Yet, professionals within this field manage deals worth billions, capable of reshaping entire industries. This interview unveils a unique perspective on the inner workings of Investment Banking.

What does this job truly entail? What does the daily life of a top banker look like, especially someone constantly facing immense responsibilities and complex strategic decisions? And, equally important, how does one balance this with a private life? In this extensive interview with Dick Boer, Co-Head of Investment Banking at Van Lanschot Kempen, we explore the challenges of this sector. The insights shared are invaluable for anyone interested in Investment Banking, particularly for students aspiring to a career in this field. It reveals the fundamental principles that underpin success in corporate finance.

“I started in Rotterdam and took my first steps in London”

We begin the conversation by reflecting on Dick Boer’s career and how he found his way into Investment Banking. “I started my studies in Rotterdam. Between 1996 and 2002, I earned my degree in Econometrics. During my studies, I interned at JP Morgan in London, and wrote my thesis at Kempen & Co, along the canals of Amsterdam. That was my first real introduction to Investment Banking. After four and a half years, I became Vice President in corporate finance, followed by over four years in the Research department. Making recommendations on the trading floor was interesting, but I missed the deep, substantive dialogue with companies. That was what fascinated me—the truly exciting deals. After 2011, I joined the Benelux real estate team, and we expanded into Germany, focusing primarily on real estate. In 2018, I sought to broaden my knowledge and spent two months at Harvard for an advanced management program. When I returned, I took charge of the corporate finance team in the Benelux. By 2022, I had gained experience in virtually all roles, but I still had one goal in mind: to become Co-Head of Investment Banking. It is a fantastic combination of everything I have done before, now alongside Dirk Saltzherr.”

When asked what a Co-Head of Investment Banking does, Mr. Boer responds, “Primarily, we offer support—wherever we are needed. We assist in strategy development, meet clients, and contribute wherever we can. For me, specifically, this often involves the business side.”

Successful M&A: “We grow the pie, then cut larger slices”

“For many years, the focus was primarily on financing synergies: companies were acquired, and due to low interest rates, it became possible to attain a positive spread. However, once interest rates begin to rise, that synergy dissipates with the blink of an eye. Today, the focus is more on operational synergies. What overlapping cost factors can we eliminate?” Dick Boer adds, “Dividing the pie comes later; first, we need to ensure the pie gets bigger so that everyone’s slice grows too.”

“You need a winner’s mentality”

According to Dick Boer, two qualities are essential for working at Van Lanschot Kempen: “First, you must find the industry interesting. Second, it is important that you genuinely want to help others.” When asked about the mindset needed for success in corporate finance, his answer is clear: “You need a winner’s mentality. Ultimately, this sector is about achieving the best results for your client. This means constantly striving for the highest price—whether selling a company, issuing shares, or managing an acquisition. Competition drives this business, and embracing it is essential.. You have to be driven to win and to get the best outcome for your client.”

He emphasizes that success in corporate finance is not solely about numbers; it is also about persistence and strategic thinking. “You need to enjoy the constant challenge of optimizing a deal. Every deal is different, and each one presents new obstacles to overcome. That’s what makes the work so interesting. But you must have the drive to win, as the stakes are often high, and every mistake can cost millions.”

“The best-kept secret of the Zuidas: Trust is everything”

Throughout the conversation, the theme of trust surfaces repeatedly. For a banker, trust is the cornerstone of success in the financial world. “You must always be honest with your client, even if it means telling them that a deal is not the right choice. Sometimes, that means you will not make money in the short term, but in the long run, it always pays off. A client places their trust in you because they recognize that you genuinely prioritize their best interests, rather than merely seeking to profit quickly. Trust is the foundation of everything in this business.”

Boer adds, “Our discussions with clients remain confidential. We do not publicly showcase significant deals. If you lose trust, you lose your client. We have clients with whom we have completed twenty deals. They keep coming back because they know we always prioritize their interests.” However, one misstep can break that trust. “You are only as good as your last deal,” says Boer. It may seem at odds with the long-term vision, but these two go together. “Every deal must be done well, so clients return to you. I always tell my team: ‘It is not just about today’s deal, but about the relationship you’re building for the future.’ If your client is satisfied with what you have achieved, they will come back next time. And that is the most important thing in this business: satisfied clients who return. Repeat business is what sustains us. A satisfied client not only returns but may also refer new clients.”

Mr. Boer explains, “Marketing is not really our strength. We are the best-kept secret of the Zuidas. But happy clients bring in new clients or return themselves. That’s the highest compliment you can receive—it means you’ve done something right.”

“Integrity has the greatest longevity”

It is not just about ensuring the client is happy with the deal; it is also about them knowing their advisor will always be honest. “Sometimes, you have to tell a client that a deal is not the right move.It may not always be what the client wishes to hear, but it is what they need to hear. Ultimately, such honesty yields significant returns. A client places their trust in you because they recognize that you genuinely prioritize their best interests, rather than merely seeking quick financial gain.”

Another aspect Mr. Boer highlights is conflict of interest. “There are times when we find ourselves advising clients who are negotiating against one another. It is our responsibility to serve the client who has requested our advice at that moment. That is professionalism, and it builds trust.” And that trust pays off later. “We know who we work for. In one deal, we were on the selling side, and one of our largest clients turned out to be the underbidder. They missed out on the deal and were initially dissatisfied. But at that moment, we weren’t working in their interest, and we made that clear. Months later, that same party called us, involving us in a much larger deal where we served as their sole advisor. That was exhilarating.”

“My day starts early—a conscious choice”

Mr. Boer travels frequently, though less so than prior to the pandemic. A day spent abroad typically involves a tightly packed schedule. “Last week, I was in Berlin for two days, during which I attended 25 meetings. It felt close to speed dating,” he says. Although his work schedule appears hectic, he explains that he intentionally opts to begin his day early to achieve a better balance between work and family life. “I usually start around 7:30 a.m. at the office, a habit I picked up from working on the trading floor, where we had to be ready before the day’s news broke. I have maintained these early hours in my subsequent roles because it allows me to be home in time for dinner with my family. It also means that by early afternoon, I have tackled the day’s most important tasks, which gives me some peace of mind for the rest of the day.” It is a matter of setting priorities. “Starting early lets me get the most out of my day.”

Mr. Boer underscores the importance of making choices and establishing priorities, which is crucial in a demanding role such as his. “Of course, I sometimes work in the evenings, and I have commitments outside work hours, but I try to limit that.”

He explains that this balance between work and personal life is crucial for long-term success in the industry. “It is essential to allow yourself time to relax and enjoy moments with your family. Constant work can lead to mistakes over time. Achieving a balance is necessary to maintain sharpness and optimal performance. I often observe young individuals believing that working around the clock is the key to success, but such a routine is not sustainable. Prioritizing self-care is vital; without it, longevity in your career may become unattainable.”

“Preparation is key”

In addition to a winner’s mentality and a healthy work-life balance, thorough preparation is essential for a successful M&A deal, according to Mr. Boer. “Thorough preparation is key. Prior to making any deal public, we meticulously address every detail to prevent any surprises during the process. Unforeseen issues can lead to price reductions, which must be avoided, as such outcomes can result in significant financial losses for our clients.”

The Impact of the Recent 0.5% Rate Cut by the Fed on M&A Deal Volume

The impact of interest rates on mergers and acquisitions is a widely debated topic in the financial sector, and the banker explains how rate fluctuations have a direct influence on the market. “When interest rates began to rise, we observed a decline in merger and acquisition activity. Buyers were present, yet sellers clung to the elevated valuations that prevailed when rates were low. Meanwhile, buyers thought, ‘If I wait, everything will become cheaper.’ Additionally, banks adopted a more cautious approach to financing: a high interest rate implies that, if revenues remain steady, a substantial portion must be allocated to interest payments, leading to increased risks. Consequently, more equity is required, resulting in a dual effect: fewer deals.”

Now that interest rates appear to be stabilizing, Dick Boer anticipates a resurgence of activity in the market. “I anticipate a rise in mergers and acquisitions in the near future. There is substantial capital circulating in the market, and an M&A wave is approaching.” He underscores that timing and psychology often hold equal importance to economic factors. “Many people think it is solely about the numbers, but market perception is just as vital. If buyers and sellers believe that interest rates will decline, they will hesitate. Conversely, if they anticipate rising prices, they are more inclined to act quickly. This results in a highly dynamic market where constant vigilance is essential.”

Hostile Takeovers: A Tough Battle

A hostile takeover is a transaction in which the management of the target company opposes the acquisition. Such takeovers are invariably complex and necessitate a different approach than friendly deals, as the banker explains. “A hostile takeover is always more challenging. In a friendly takeover, you can sit down with management and negotiate matters such as personnel and strategy. In a hostile takeover, management is uncooperative, requiring buyers to explore alternative routes to achieve a successful deal.” This latter scenario can unfold in two ways, Mr. Boer elaborates. “The buyer may walk away, allowing the deal to fall through. However, if you perceive genuine value in the company, you may still proceed with an ‘unfriendly’ bid.”

He recounts experiences from both sides of such transactions. “We have acted on behalf of both the acquiring party and the defending party. It is always a hard struggle, as you are not only dealing with the numbers but also with the dynamics of management and shareholders. Strategic thinking and perseverance are essential to successfully conclude such deals.”

A hostile takeover can lead to friction, including ethical dilemmas. Dick Boer states: “There are certain sectors in which we do not engage, and we also avoid specific situations. A few years ago, we found ourselves involved in a hostile deal that we did not support. Choosing not to participate in that deal was a conscious decision.”

An example of a hostile takeover he facilitated illustrates the complexity of such deals. “We had a client interested in acquiring a publicly traded company, but the management resisted the takeover. We devised a strategy in which we first engaged with the shareholders, convincing them of the deal’s value. In the end, we secured enough backing from the shareholders to move forward with the acquisition, despite the management’s resistance.”

Such situations demand strategic insight and a willingness to persevere. “In a hostile takeover, you must be prepared to fight for the deal. It may not always be pleasant, but if approached correctly, you can achieve significant successes. The most important thing is to always prioritize your client and continually seek ways to bring the deal to a successful conclusion.”

“Wild West Stories of Pizza Boxes Across the Office Are Fun, but a Truly Complex Deal is What is Truly Exciting”

“I could share anecdotes about working late into the night on various deals, but those stories are quite familiar. From pizza boxes being tossed around the office to sleepless nights, such experiences can be thrilling in one’s youth. However, a complex deal where we genuinely made a difference for a client—those, in my opinion, are the real ‘Wild West’ stories.” Dick Boer adds: “A public takeover in Germany ultimately became a highly intricate transaction comprising three deals in one. We saved millions for a client in a deal that had never been executed before. Intellectually, that was incredibly rewarding.”

One of the most memorable deals in his career emerged from a situation in which he advised his client to exercise patience. “We had a client with a particular asset whose value was already quite high. However, we foresaw that market changes in the coming years would further enhance the value of that asset. We advised the client to postpone the sale, a peculiar suggestion for an advisor who earns from transactions.” However, this client attempted to sell the asset independently, but without success. “They returned to us, as their co-shareholder insisted that we be involved in the process. In the first bidding round, we attracted seven parties offering over 300 million, while the client had initially found a bidder at 217 million. Ultimately, we sold the asset for 345 million, resulting in a substantial difference for the client’s equity.”

Such successes illustrate the importance of sometimes going against the grain and exercising patience. “At times, it is better to take a step back and await a more advantageous moment. While this may not always be the simplest advice to provide, in this instance, it proved to be highly rewarding. The client was thrilled with the outcome, and the value difference was significant.”

Advice for Young Professionals: “The Social Aspect is Underestimated”

Finally, we ask him for advice for young professionals considering a career in corporate finance. His message is clear: “In addition to your academic pursuits, it is important to participate in activities outside the classroom. Success is not solely determined by numerical proficiency and theoretical knowledge; practical experience is equally essential. Whether through an internship, a board role, or a part-time position, the primary focus should be on honing your interpersonal skills and fostering social interaction.”

Dick Boer observes that many young people tend to adopt a solitary approach. “At university, much of your work is done independently; you find yourself immersed in your books as you prepare for exams. However, in this business, everything revolves around teamwork. You must learn to collaborate with others and ask for help when needed. This is something many young people still struggle with, but it is essential for success in this sector.” He emphasizes that long-term relationships are built on genuine contact, not merely through emails or messages.

As advice to students, Dick Boer suggests: “Engage in short interactions with those around you. Ask questions and do not hesitate to show vulnerability. It is perfectly acceptable not to know something, as long as you are willing to seek assistance and learn from others. This requires strong social skills.”

Conclusion: The Essence of Success in Corporate Finance

At the heart of success in the world of corporate finance lies a combination of thorough preparation, a competitive mindset, and the ability to build strong, trusting relationships. While performance is crucial in this field, trust and integrity are equally vital. For young professionals contemplating a career in corporate finance, the advice is clear: practice honesty, ask for assistance when needed, and maintain a long-term perspective. To achieve this, you must possess strong social skills. That is the route to achieving success in this demanding yet fulfilling field.