AVPN Webinar

19 March 2015
Whats your exit plan?
Managing Exits

Priscilla Boiardi, EVPA

yvind Sandvold, Ferd
avpn.asia

How to Plan and Execute an Impactful Exit

EVPA/AVPN Webinar
19th of March 2015

EVPA is kindly supported by:

With the financial support
of the European Union

How to Plan and Execute an Impactful Exit

Priscilla Boiardi
Research Manager
EVPA

yvind Sandvold
Director of Business
Development
Ferd Social
Entrepreneurs (FSE).

EVPA is kindly supported by:

With the financial support
of 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

EVPA is kindly supported by:

With the financial support
of the European Union

The five-step exit strategy process

EVPA is kindly supported by:

With the financial support
of the European Union

The exit strategy process and the

investment process

EVPA is kindly supported by:

With the financial support
of the European Union

Step 1 Determining key exit considerations

1

2
Determining key exit
considerations

Developing an
exit plan

Determining
exit readiness

Context
Social &
financial
return
goals of
the VPO

Coinvesting

5
Executing an
exit

Type of
investee

Type of
funding
Relationsh
ip with
donors/
funders/
trustees

EVPA is kindly supported by:

With the financial support
of the European Union

Postinvestment
follow-up

Step 2 Developing an exit plan

1

2
Determining key exit
considerations

3
Developing an
exit plan

4
Determining
exit readiness

5
Executing an
exit

EVPA is kindly supported by:

With the financial support
of the European Union

Postinvestment
follow-up

Step 3 Determining exit readiness

1

2
Determining key exit
considerations

3
Developing an
exit plan

4
Determining
exit readiness

5
Executing an
exit

EVPA is kindly supported by:

With the financial support
of the European Union

Postinvestment
follow-up

Step 4 Executing the exit how to exit

1

2
Determining key exit
considerations

3
Developing an
exit plan

4
Determining
exit readiness

5
Executing an
exit

EVPA is kindly supported by:

With the financial support
of the European Union

Postinvestment
follow-up

Step 4 Executing the exit whom to exit to

1

2
Determining key exit
considerations

3
Developing an
exit plan

4
Determining
exit readiness

5
Executing an
exit

EVPA is kindly supported by:

With the financial support
of the European Union

Postinvestment
follow-up

Step 5 Post-investment follow-up

1

2
Determining key exit
considerations

3
Developing an
exit plan

Exit evaluation of:

4
Determining
exit readiness

5
Executing an
exit

Postinvestment
follow-up

Follow-up activities (for continued

social impact):

Networking events
Keep a board seat
Additional non-financial support
Collect additional information after exit

EVPA is kindly supported by:

With the financial support
of the European Union

About FERD

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%

EVPA is kindly supported by:

With the financial support
of the European Union

13

Vision, Corporate Mission Statement and

Value Platform

EVPA is kindly supported by:

With the financial support
of the European Union

Business Areas

EVPA is kindly supported by:

With the financial support
of the European Union

Ferd Social Entrepreneurs

Active investments

Alumni

EVPA is kindly supported by:

With the financial support
of the European Union

Case Study: Unicus

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

EVPA is kindly supported by:

With the financial support
of the European Union

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

EVPAEVPA
is kindly
and its
supported
Knowledge
by: Centre are supported by:
With the financial support
of the European Union

Lessons Learned
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

EVPA is kindly supported by:

With the financial support
of the European Union

Recommendations
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

EVPA is kindly supported by:

With the financial support
of the European Union

Remaining challenges
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.

EVPA is kindly supported by:

With the financial support
of 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:

With the financial support
of 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 EFTAEEA 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
EVPA is kindly supported by:
With the financial support
of the European Union

23

Thank you for your time!

For further questions, please contact

Priscilla Boiardi
Research Manager
EVPA
pboiardi@evpa.eu.com
yvind Sandvold
Director of Business Development
Ferd Social Entrepreneurs (FSE)

EVPAEVPA
is kindly
and its
supported
Knowledge
by: Centre are supported by:
With the financial support
of the European Union

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