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With ten years of practice behind them, venture philanthropy and social investment organisations are starting to build valuable experience on exits. Building on those learnings and insights, the EVPA Knowledge Centre shared best practices on exits collected in the recent report “How to plan and execute an impactful exit” and Ferd Social Entrepreneurs shared their experience managing exits.The webinar addressed issues related to exit planning and management as well as how to sustain the social impact you have helped to create once your partnership ends.
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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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Priscilla Boiardi
Research Manager
EVPA
How to Plan and Execute an Impactful Exit
3
yvind Sandvold
Director of Business Development
Ferd Social Entrepreneurs (FSE).
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
4
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
The five-step exit strategy process
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
The exit strategy process and the
investment process
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Step 2 Developing an exit plan
Determining key exit considerations
Developing an exit plan
Determining exit readiness
Executing an exit
Post-investment follow-up
1 2 3 4 5
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Step 3 Determining exit readiness
Determining key exit considerations
Developing an exit plan
Determining exit readiness
Executing an exit
Post-investment follow-up
1 2 3 4 5
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Step 4 Executing the exit how to exit
Determining key exit considerations
Developing an exit plan
Determining exit readiness
Executing an exit
Post-investment follow-up
1 2 3 4 5
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Step 4 Executing the exit whom to exit to
Determining key exit considerations
Developing an exit plan
Determining exit readiness
Executing an exit
Post-investment follow-up
1 2 3 4 5
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Step 5 Post-investment follow-up
Determining key exit considerations
Developing an exit plan
Determining exit readiness
Executing an exit
Post-investment follow-up
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:
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
13
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Vision, Corporate Mission Statement and Value Platform
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
Business Areas
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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 is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
EVPAs research on exit strategies is kindly supported by:
EVPA is kindly supported by:
EVPAs Knowledge Centre is kindly supported by:
EVPA is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
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 is kindly supported by:EVPA is kindly supported by:
With the financial supportof the European Union
EVPA and its Knowledge Centre are supported by:
Priscilla Boiardi
Research Manager
EVPA
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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