AVPN Webinar: Managing Exits - What is your exit plans (19 March 2015)

avpn.asia

AVPN Webinar

19 March 2015

Whats your exit plan?

Managing Exits

Priscilla Boiardi, EVPA

yvind Sandvold, Ferd

EVPA is kindly supported by:EVPA is kindly supported by:

With the financial supportof the European Union

How to Plan and Execute an Impactful Exit

EVPA/AVPN Webinar

19th of March 2015



Priscilla Boiardi

Research Manager

EVPA

How to Plan and Execute an Impactful Exit

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yvind Sandvold

Director of Business Development

Ferd Social Entrepreneurs (FSE).



EVPAs Definition of Exit Strategy

An exit strategy is the action plan to determine when the VPO can no longer add value to the investee, and to end the relationship in such a way that the social impact is either maintained or amplified, or that the potential loss of social

impact is minimised

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The five-step exit strategy process



The exit strategy process and the

investment process



Step 1 Determining key exit considerations

Determining key exit considerations

Developing an exit plan

Determining exit readiness

Executing an exit

Post-investment follow-up

1 2 3 4 5

Type of investeeContext

Social & financial return

goals of the VPO

Type of funding

Relationship with donors/ funders/ trustees

Co-investing



Step 2 Developing an exit plan




Executing an exit


1 2 3 4 5



Step 3 Determining exit readiness




Executing an exit


1 2 3 4 5



Step 4 Executing the exit how to exit




Executing an exit


1 2 3 4 5



Step 4 Executing the exit whom to exit to




Executing an exit


1 2 3 4 5



Step 5 Post-investment follow-up




Executing an exit


1 2 3 4 5

Follow-up activities (for continued social impact): Networking events

Keep a board seat

Additional non-financial support

Collect additional information after exit

Exit evaluation of:



Ferd is a family-owned Norwegian industrial and financial group owned by Johan H. Andresen and family.

Ferd is an active and long-term owner of strong companies with international potential and carries out financial activities through investments in a broad range of asset classes.

In addition to the groups purely commercial activities, Ferd has an extensive involvement in social entrepreneurship.

The groups value-adjusted equity for 2013 is NOK 24.3 billion and return on adjusted equity is 25%

About FERD

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Vision, Corporate Mission Statement and Value Platform



Business Areas



Ferd Social Entrepreneurs

Active investments

Alumni

http://www.ferd.no/lang/no/show.do?page=239;568&articleid=2569http://www.ferd.no/lang/no/show.do?page=239;568&articleid=2569



Unicus AS is a Norwegian consulting company focusing on the

positive characteristics of the autism spectrum disorder. They are a

niche player providing services in testing and quality assurance of IT

systems on commercial terms.

Investment Need: seed money for the first 3 years of operation,

plus non financial support as competence and network

Financial instrument: 3 year grant totaling at 125.000

Case Study: Unicus



EVPA and its Knowledge Centre are supported by:

Exit Strategy

Pre-investment:

Through business plan and strategy and an evaluation of possibility of becoming sustainable (if not we will not invest)

During the investment period

Working closely with management and through the Board in order to build sustainable business

Normally 3 year agreements, start discussion after 2 years whether we will exit or extend agreement for another 1-3 years

Decided to exit due to the fact that they were sustainable, although they had not reached the desired size in terms of number of employees

We considered 3 alternative paths as the way forward:

Continue on their own

Searching for other financial partner

Searching for industrial partner

Post-investment follow up

Have created an alumni group where investees can become a member if both parties agree

As a member of the alumni group investees are required to report on impact every 6 months

They can extend our board member if both parties agree to do so, but then as a regular board member and not because of Ferd connections



You hardly cant start early enough to plan for exit and work with the options

Work on top line growth in order to build the foundation for sustainable business

Everything went smooth due to close working relationship throughout the investment period

Lessons Learned



Start with the end in mind

Start planning early in order to make SPO being able to

continue delivering impact

Currently 2 cases where we have made a one year extension

with focus on sustainability and financially independence

Recommendations



How to maintain the feeling of a prosperous relationship

when you actually are planning how to say goodbye?

We do no continue relationship if the only resource we can

provide is money.

The main challenge is to find the next impact investor if more

resources is needed.

Remaining challenges



EVPAs research on exit strategies is kindly supported by:

EVPA is kindly supported by:

EVPAs Knowledge Centre is kindly supported by:



This document is supported under the EU Programme for Employment and Social Solidarity PROGRESS (2007-2013).

This programme is managed by the Directorate-General for Employment, Social Affairs and equal opportunities of the European Commission. It was established to financially support the implementation of the objectives of the EU in the fields of employment, social affairs and equal opportunities and thereby contribute to the achievement of the Europe 2020 strategic objectives.

The seven-year Programme targets all stakeholders who can help shape the development of appropriate and affective employment and social legislation and policies, across the EU-27 EFTA-EEA and EU candidate and pre-candidate countries.

PROGRESS mission is to strengthen the EU contribution in support of Member States commitment. PROGRESS will be instrumental in:

providing analysis and policy advice on PROGRESS policy areas; monitoring and reporting on the implementation of EU legislation and policies in

PROGRESS policy areas; promoting policy transfer, learning and support among Member States on EU objectives

and priorities; and relaying the views of the stakeholders and society at large.

For more information see: http://ec.europa.eu/progress

The information contained in this document does not necessarily reflect the position or opinion of the European Commission

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http://ec.europa.eu/progress



EVPA and its Knowledge Centre are supported by:

Priscilla Boiardi

Research Manager

EVPA

[email protected]

yvind Sandvold

Director of Business Development

Ferd Social Entrepreneurs (FSE)

For further questions, please contact

Thank you for your time!

mailto:[email protected]

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AVPN Webinar: Managing Exits - What is your exit plans (19 March 2015)

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