Showing papers on "Exit strategy published in 2005"

International governance of war-torn territories : rule and reconstruction

Abstract: Introduction 1. Forms of International Administration PART 1: INTERNATIONAL ADMINISTRATION IN PRACTICE 2. Public Order and Internal Security 3. Refugees and Internally Displaced Persons 4. Civil Administration 5. Political Institution-Building 6. Economic Reconstruction and Development PART 2: CRITICAL ISSUES FOR INTERNATIONAL ADMINISTRATION 7. Planning Operations 8. The Exercise of Executive Authority 9. Accountability 10. Exit Strategies 11. Enhancing Effectiveness Conclusions

'Pity the Finance Minister': Issues in Managing a Substantial Scaling Up of Aid Flows

Abstract: Substantially scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on: the competitiveness of aid recipients; the management of fiscal and monetary policy; the delivery of public services; behavioral incentives; and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments; balancing alternative expenditure priorities; the implications for fiscal and budget sustainability; and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

Terrorism Risk Coverage in the Post-9/11 Era: A Comparison of New Public–Private Partnerships in France, Germany and the U.S.

Abstract: The paper discusses the development and operation of terrorism insurance programmes established in France, Germany and the U.S as reaction to 9/11. These three programmes are all based upon a public–private partnership with government backup. However, there are some fundamental differences regarding issues such as exclusions, price differentiation, risk mutualization, current level of terrorism insurance demand and the government exit strategy. In particular, significant differences of prices and degree of market penetration in the three countries have been observed and we discuss some factors that could contribute to this. Recent changes in the nature of international terrorism worldwide indicate that these issues will remain in our future. Hence, we think that government and industry would at the very least benefit from better understanding of how others operate abroad.

Is a Change in the Renminbi Exchange Rate in China's Interest?

Abstract: This paper reviews the controversy over China's exchange rate regime. Placing the issue in the context of the literature on exit strategies, it argues that the best time for China to exit from its peg is now while capital is flowing in and there is a tendency for the rate to appreciate. In contrast, waiting to exit until sentiment has turned around would be problematic. In addition, moving now to a managed float would help the Chinese authorities to gain better control of domestic credit conditions. The principal objections to this recommendation (viz., the banking system is weak, many state enterprises are loss making, and the capital account is not sufficiently open) are unconvincing. Finally, the impact on other countries is likely to be more complex and varied than suggested by other analyses.

Pity the Finance Minister : Issues in Managing a Substantial Scaling-Up of Aid Flows

Abstract: Substantially scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on: the competitiveness of aid recipients; the management of fiscal and monetary policy; the delivery of public services; behavioral incentives; and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments; balancing alternative expenditure priorities; the implications for fiscal and budget sustainability; and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

What we know about exit strategies. Practical guidance for developing exit strategies in the field.

Abstract: The topic of Exit Strategies confounds and eludes emergency and development practitioners alike. In the dynamic context of southern Africa the mere mention of an exit when discussing food programming can cause panic among communities NGO staff government and other stakeholders. The goal of this guidance document is to improve our collective understanding and ability to develop and implement sound Exit Strategies from Developmental Relief Programs. The objectives are two-fold: 1. strengthen C-SAFEs existing Exit Strategies during the final year of the C-SAFE grant; and 2. better prepare NGO staff to develop strong Exit Strategies for future programs including those that follow on from C-SAFE. (excerpt)

Private Equity in Brazil: A Comparative Perspective

Abstract: This article analyzes the evolution of the private equity and venture capital industries in Brazil, using the U.S. market as an ideal type. The main challenges faced by this sector in Brazil are the volatility of the economy, a lack of seed capital, and the illiquidity of capital markets, which make exit strategies through initial public offerings problematic. On the other hand, the decreasing level of real interest rates and the recent changes in the regulatory framework are the two main factors that bode well for the future growth of the sector. As a result, the authors believe Brazil will become one of the most important markets for private equity by the end of the decade

Estratégia de saída em capital de risco

Abstract: What lies behind Venture Capital (VC) exit strategy? This paper empirically approaches the question by analyzing Brazilian data. It raises evidence of a high...

Exit Strategy for UK Leveraged Buyouts: Empirical Evidence on Determinants

Abstract: This study provides evidence on the determinants of exit strategies for UK leveraged buyouts (LBOs). Using a sample of 104 going concern UK LBOs exited by the LBO sponsors between 1998 and 2004, we analyse the determinants of the exit routes - IPO, trade sale or secondary LBO (SBO) - by estimating a trinomial logistic regression model. Operating performance, firm size, length of holding period by the LBO sponsor and whether the firm belongs to the high tech indsutries are significant determinants of the exit strategy. Operating performance is significantly higher in the SBO than in other two categories and holding period significantly longer than in trade sales. This suggests that when exit markets such as the stock market or the M & A market are not favourable, LBO sponsors hold on to better performing firms longer while waiting for better market conditions but dispose of others through flotation or trade sale. The evidence suggests that the secondary LBO market might be sieving off the best companies from the portfolios of LBO sponsors. We also find evidence that exit returns have no significant explantory power for the exit route and that larger firms are less likely to be exited by flotation and trade sale. These preferences for exit routes are likely to be due to exit market conditions.

Effects of corporate social responsibility in latin american communities: a comparison of experiences

Abstract: Five different Latin American experiences help us to understand the impacts of corporate social responsibility on communities. We focus on communities composed of low-income populations to compare types of interventions, their main characteristics, spaces for community participation, and some results and impacts. Some of the findings indicate that (a) a company’s enlightened self-interest in its CSR program ensures its commitment to the program and the program’s sustainability; (b) community involvement from the outset in defining a project increases the probability of success, since corporations cannot assume they understand the needs of a community by taking them at face value; (c) projects do not create untenable expectations in local communities when they consider the whole life cycle and the sustainability of the investment after an appropriate exit strategy is executed; and (d) financial resources are only part of the equation because corporations can have enormous impacts with limited financing if programs are well defined and supported.

System and method for high-yield returns in riskless-principal interest rate/yield arbitrage

Abstract: A system, method and strategy of investment can be executed in any currency and amount and, when constructed, can be executed and closed in certain steps to result in a pre-defined, guaranteed and quantifiable level of profitability for an investment without risk that the principal investment amount will be lost or depleted. The system, method and strategy also simultaneously guarantees the following results for all other transaction participants: (a) a pre-defined level of profit for the Investor and/or his Asset Manager (“Manager”) and the lender for the refinancing or discounting; (b) an option to call which when executed by the original issuer of the instruments will result in a profit for the original issuer (e.g. insurance companies, banks, brokerage firms, financial institutions, and/or corporations); (c) an exit strategy that allows each and every participant in the transaction to exit its original position without exposure to ongoing currency fluctuations, changes in interest rates and yields, or default by the issuers of financial products.

Can Insurance Firms Easily Exit from the Market? A Global Comparative Analysis of Regulatory Structures *

Abstract: This paper deals with market exit issues in the insurance industry. It examines theoretical and practical aspects of exit regulation in insurance as well as internal and external factors that firms may use to select a market exit strategy. From comparing regulatory stringency and permitted forms of market exit in selected countries in Asia, Europe, and North America, the authors find several commonalities. That is, regulators tend to accentuate their responsibility for protecting policyholders’ interests, be deeply involved in most exit processes, and prefer other forms of exit (e.g., buy-out of liabilities or a complete acquisition of business by another firm) than immediate dissolution of insurers. However, not all governments examined are ready to effectively deal with matters related to insurers’ exits from the market. Some governments need better structured regulation and some transparency in market exit regulation.

Pity the Finance Minister; Issues in Managing a Substantial Scaling-Up of Aid Flows

Abstract: Substantially scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on: the competitiveness of aid recipients; the management of fiscal and monetary policy; the delivery of public services; behavioral incentives; and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments; balancing alternative expenditure priorities; the implications for fiscal and budget sustainability; and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

“Pity the Finance Ministerâ€

Abstract: Substantial scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on the competitiveness of aid recipients, the management of fiscal and monetary policy, the delivery of public services, behavioral incentives, and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments, balancing alternative expenditure priorities, the implications for fiscal and budget sustainability, and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

Raising Capital and Developing Exit Strategies for the Closely Held Business Owner: A Tutorial for Financial Professionals Raising Capital and Developing Exit Strategies for the Closely Held Business Owner: A Tutorial for Financial Professionals

Abstract: This article will detail a number of con- cerns of the 21st century small- to middle-market business owner and the ways in which financial professionals can help address those concerns, including raising capital to support the growth of a business and, ultimately, deriving liquidity from the significant amount of wealth tied up in a business.

Iraq Is Not Vietnam

Abstract: WHEN AMERICAN GROUND forces paused briefly during the march to Baghdad in 2003, critics of the war were quick to warn of a "quagmire," an oblique reference to the Vietnam War. Virtually as soon as it became clear that the conflict in Iraq had become an insurgency, analogies to Vietnam began to proliferate. This development is not surprising. Critics have equated every significant American military undertaking since 1975 to Vietnam, and the fear of being trapped in a Vietnam-like war has led to the frequent demand that U.S. leaders develop not plans to win wars, but "exit strategies," plans to get out of messes. There is no question that the Vietnam War scarred the American psyche deeply, nor that it continues to influence American foreign policy and military strategies profoundly. CENTCOM's strategy for the counterinsurgency effort in Iraq is an attempt to avoid making Vietnam-like mistakes. Proponents of other strategies, like "combined action platoons" or "oil spot" approaches, most frequently derive those programs from what they believe are the "right" lessons of Vietnam. It is becoming increasingly an article of faith that the insurgency in Vietnam is similar enough to the insurgency in Iraq that we can draw useful lessons from the one to apply to the other. This is not the case. The only thing the insurgencies in Iraq and Vietnam have in common is that in both cases American forces have fought revolutionaries. To make comparisons or draw lessons beyond that basic point misunderstands not only the particular historical cases, but also the value of studying history to draw lessons for the present. Vietnam AN INSURGENCY WAS underway in Vietnam for nearly two decades before Lyndon Johnson committed large numbers of American ground forces to the fight in 1965. The U.S. had nevertheless maintained hundreds and then thousands of "advisors" there for years before that in an effort to help the South Vietnamese government of Ngo Dinh Diem fight off an attempt to remove him that had both internal and external components. The Viet Cong was a terrorist/guerrilla force recruited from within South Vietnam and operated there. It was heavily supported by the communist government in North Vietnam, which sent advisors, equipment, and supplies, and which provided a safe haven. Ho Chi Minh's government also supplied troops, however, and the first major battle U.S. forces in Vietnam fought on their own (now immortalized in print and on the screen as We Were Soldiers Once ... and Young) was the Battle of the Ia Drang Valley; the enemy were North Vietnamese soldiers. The presence of North Vietnamese troops in South Vietnam, and the enormous logistics train the North maintained for the benefit of its Viet Cong partners, complicated the development of American counterinsurgency strategy enormously. Throughout the war, American leaders had difficulty deciding whether the main enemy was the North Vietnamese Army (NVA) or the Viet Cong (VC). In the initial phases of the war, the U.S. leadership focused more on the NVA and therefore on using conventional American military capabilities to defeat the external threat. This was a convenient decision that allowed the U.S. to bring all its military power to bear: Troops fought the NVA on the ground; aircraft and "swift boats" attempted to cut off North Vietnamese supply lines; bombers attacked targets within North Vietnam in an attempt to dissuade Ho Chi Minh from continuing the fight. Efforts to conduct a real counterinsurgency within the South were generally overwhelmed by this focus on a more or less conventional struggle against North Vietnam. Thus critics then and since have complained that the Combined Action Platoons (CAPs) program pioneered by the Marines would have been much more successful if only it had been better resourced, for example. Such claims are plausible, but they generally ignore two defining factors of the South Vietnamese insurgency: the presence of sizable enemy units maneuvering throughout the country, and the illegitimacy of the South Vietnamese government. …

Exit Strategies of Venture Capitalists in Hot Issue Markets: Evidence from the “Neuer Markt" in Germany

Abstract: In this study we analyze the IPO exit behavior of venture capitalists (VCs) in the Neuer Markt, the former market for young growth companies in Germany. We find empirical evidence that VCs were able to time their exit quite successfully in the primary market and to some extent also in the secondary market. The larger the number of shares being sold by the VCs at the IPO date, the lower is the IPO performance after expiration of the lock-up period. In addition, the firms that went public in the year 2000 planned their IPO too late in the stock market cycle so that--due to the mandatory lock-up period of six months--some VCs had no chance for a lucrative exit and still owned shares three years after the IPO. Thus, lock-up commitments can be quite costly for early investors particularly towards the end of a hot issue market.

The Third Option in Iraq: a Responsible Exit Strategy

Abstract: The U.S. military occupation of Iraq is the subject of a political stalemate at home, despite its lack of public support. A CNN/ USA Today/Gallup Poll survey in mid-June showed that 59 percent said they opposed “the U.S. war with Iraq,” while only 39 percent said they favored it. Even more significant, the percentage opposing war with Iraq had increased by 21 points since mid-March. A Harris Poll taken in June revealed that 63 percent of the sample favored bringing “most of our troops home in the next year,” while only 33 percent favored waiting until a “stable government” had been established in Iraq. This popular opposition to continued occupation might be dangerous for the administration, but two factors tend to muffle its political impact. First, the divide in the country is highly partisan: Republicans still support the president by a 3-to-1 margin; while Democrats disapprove 7-to-1 and independents 2-to-1. This gives a Republican president plenty of room for maneuver.1 Movement toward an exit strategy, moreover, is still resisted by a large majority of the political elite. In the first clear test, on May 26, an amendment calling on President Bush to devise a plan for withdrawal from Iraq was defeated in the House of Representatives 300 to 128. Thus Congress is far more supportive of a long occupation than is the populace. This has enabled the Bush administration to act as though it were immune to the polling data, declaring that it has a “victory strategy” rather than an “exit strategy.” The wide gap between public opinion and the split in Congress on Iraq is in large part the result of a failed national discourse on Iraq. The political elite now have only two choices: either to set a unilateral timetable for troop withdrawal or to give the administration unlimited time to build adequate Iraqi security forces to replace U.S. troops – and to determine when they are adequate. This stark choice has left even most opponents of the initial invasion willing to tolerate the administration’s policy of indefinite occupation, because of their fear of the unknown consequences of a defeat for U.S. policy in both Iraq and

Beyond M&A and Ipos: Exploring Alternative Liquidation/Financing Options for Venture Capital Firms and Their Portfolio Companies

Abstract: The purpose of this study is to examine the exit stageof the venture capital investment cycle in light of the dramatic changes thathave occurred recently in the industry and in the public markets. First, theimpact of these changes on initial public offerings (IPOs) and trades sales,the liquidation strategies traditionally used by venture capital-backed firms,is discussed. Next, two alternative liquidation strategies--the reverse mergerand the direct public offering (DPO)--are outlined. A framework forunderstanding reverse mergers and DPOs is then developed. Finally, data on thepost-merger stock performance of 25 companies that underwent reverse mergersare used to determine how successful these alternatives have been in terms ofdelivering shareholder returns. The data suggest that reverse mergers are not always ideal for VCs and youngcompanies looking to exit into the public markets. Still, reverse mergers andDPOs are quickly becoming legitimate strategies that will likely grow inpopularity. (SAA)

Developing Appropriate Exit Strategies for Housing Regeneration Programmes

Abstract: This report presents the findings of a project undertaken by the AHURI Southern Research Centre to review current practices and develop appropriate exit strategy models for housing regeneration programmes. Exit strategies can provide a planning implementation framework for State Housing Authorities to sustain the benefits of housing regeneration expenditure once renewal programmes have formally ended. From the review undertaken for the Positioning Paper, it is evident that community empowerment is the most favoured strategy deployed by Australian State and Territory Housing Authorities to sustain the benefits of regeneration investment. Only in Queensland has the housing authority begun to develop explicit exit strategies including project management arrangements to manage housing estates for the period after the regeneration project has been completed. Australian State Housing Authorities’ policies can be contrasted with strategies developed by local housing authorities in the UK where exit strategies are an established tool in the management of housing regeneration projects. However, there is a paucity of research exploring deployment of exit strategies and the problems that can arise at the end of a regeneration project, largely because most renewal programmes are long term and few have been completed to date. The aim of the research was to look in close detail at specific policy innovations and gauge the perceptions of key housing and regeneration professionals, tenant activists and policy-makers. The specific research questions were: 1. What practices are being deployed by State Housing Authorities to secure sustainability on housing regeneration projects? 2. What are the external and structural factors that can impede the efficacy of housing renewal programmes? 3. What are the key issues that should be considered from the outset in relation to a limited time renewal/regeneration program? 4. How can residents be involved in the development of an exit strategy? 5. What agencies need to be involved in the formulation of an exit strategy? 6. What institutional capacity is required to implement exit strategies? 7. How should exit strategies be evaluated? 8. What are the implications for state housing authorities in not employing exit strategies for renewal programmes? Five housing regeneration initiatives (all at different stages of development and spread across three jurisdictions) were selected as case studies. The South Australian case studies (Salisbury North and the Parks) are well-established projects at a pre-exit strategy stage. The Tasmanian case study (Bridgewater) typifies a mature project where the regeneration programme has formally ended and a community-based agency (Bridgewater Urban Renewal Project) has been established to maintain the achievements of the programme. The New South Wales case studies are the Minto project, which has not completed the initial master planning stage and has no exit strategy, and Windale community renewal scheme (which involves community initiatives only, not physical renewal as in the other estates), where there is a clear exit strategy, namely to transfer the effective ownership of the regeneration process to the community. The findings of the research are structured around three thematic areas: exit strategies and objectives; the management of exit strategies; and evaluation issues.

The Search for Exit Strategies from Neo-Colonial Interventions

Abstract: In many respects the current US situation in Iraq is one that resembles a colonial or neo-colonial policy. This involves forced entry by external great powers bent on reshaping the political system and taking command of the economic resources and their use. Although the initial conflict was international in nature, a persistent insurgency continues to challenge these efforts. The United States, nonetheless, continues to work toward a successful withdrawal from Iraq. This article explores the potential for successful exit. Using a case set of 17 extra-state wars for the period 1945-99, the authors explore factors of international support, exit agreements, and additional conflict variables in relation to exit outcome. Although a clear pattern of successful exit does not emerge, our findings sug gest that some of our assumptions regarding newly emerging states and external power withdrawal should perhaps be questioned.

Exit Strategy for UK Leveraged Buyouts: Empirical Evidence on Determinants

Abstract: This study provides evidence on the determinants of exit strategies for UK leveraged buyouts (LBOs) Using a sample of 104 going concern UK LBOs exited by the LBO sponsors between 1998 and 2004, we analyse the determinants of the exit routes - IPO, trade sale or secondary LBO (SBO) - by estimating a trinomial logistic regression model Operating performance, firm size, length of holding period by the LBO sponsor and whether the firm belongs to the high tech indsutries are significant determinants of the exit strategy Operating performance is significantly higher in the SBO than in other two categories and holding period significantly longer than in trade sales This suggests that when exit markets such as the stock market or the M & A market are not favourable, LBO sponsors hold on to better performing firms longer while waiting for better market conditions but dispose of others through flotation or trade sale The evidence suggests that the secondary LBO market might be sieving off the best companies from the portfolios of LBO sponsors We also find evidence that exit returns have no significant explantory power for the exit route and that larger firms are less likely to be exited by flotation and trade sale These preferences for exit routes are likely to be due to exit market conditions

The World Bank in Iraq : Iraqi ownership for sustainability

Abstract: This paper examines the experiences of the World Bank Group in other countries, and explores its work in Iraq in light of its mandate and areas of impact. It outlines the objectives the Bank Group has sought to meet and the procedures used to adapt to the Iraqi context, while focusing on transparency, inclusiveness, and sustainability. While the Bank's current focus in Iraq is on reconstruction and essential services, the near term offers a chance to lay the groundwork for credible institutions of social inclusion, in addition to supporting sustainable reconstruction and reform. This paper looks at how Iraq, a country with ample natural and human capital, can look past the immediate needs of post-conflict reconstruction to an eventual return as a middle-income country that managed its own affairs and contributed assistance to other countries. Models for reconstruction are closely looked at as to how to move Iraq to country ownership. The paper also looks at how to adopt post conflict reconstruction experience and adapting it to Iraq. The final section of the paper deals with lessons of experience and lessons learned.

Can Peacekeeping Operations Promote Democracy

Abstract: Enforcing the Peace: Learning from the Imperial Past. By Kimberly Zisk Marten. New York: Columbia University Press, 2004. 202 pp., $27.95 (ISBN: 0-231-12913-0). Should peacekeeping operations use armed force in self-defense only, or are “robust” operations preferable? Should peacekeeping be carried out by regional actors, or do such actors threaten the neutrality of these operations? These are questions that have been raised repeatedly over the past decade in the literature on peacekeeping (see, for example, various articles in the journal International Peacekeeping ). More recently, debates have focused on whether democracy can be imposed through outside intervention—either through unilateral or multilateral missions. Indeed, democracy is sometimes used as a criterion for measuring the success of peacekeeping operations (Heldt and Wallensteen 2005). Others have argued that establishing or supporting democracy should be part of the exit strategy for all peacekeeping operations (for example, United Nations 2000a, 2000b, 2001; see also Fearon and Laitin 2004 for a discussion on exit strategies). Yet, statistical studies indicate that democratization increases the risk of civil war (Hegre et al. 2001), that democracies following military intervention (as opposed to peacekeeping) tend to be short-lived and, therefore, evidently artificial (Gates and Strand 2004; Gleditsch, Christiansen, and Hegre 2004), and that post-civil war periods (Wantchekon 2004) are associated with increased levels of democracy. Enforcing the Peace: Learning from the Imperial Past by Kimberly Zisk Marten touches on all of these questions, and thus it relates to several strands of literature. The book focuses on “complex peacekeeping operations,” by which Zisk Marten means operations that (1) aim to rebuild domestic political and legal institutions by overseeing elections, through economic reconstruction, and so on; (2) consist of large and heavily armed peacekeeping contingents that are able to stop spoilers from wrecking peace processes; and (3) are carried out with UN Security Council support but not under UN command (pp. 34–36). In contrast to traditional peacekeeping, these operations are no longer …

how to design growth and exit strategy

Abstract: Th is paper is based on a case study of an entrepreneurial start-up fi rm design- ing its growth and exit strategy. Th e paper discusses the wealth creation challenge a company faces once it has successfully opened shop. Specifi cally, the paper describes an entrepreneur's analysis of advantages and disadvantages of diff erent growth models: organic, franchise, ac- quisition; it also discusses how to prioritize growth opportunities. Additionally, the paper analyses the application of fi nancial modelling and valuation methods to entrepreneurial businesses. Finally, the authors explore issues and options the entrepreneur could consider when designing an exit strategy.

The ‘victory’ code: Bush's exit strategy and prospects for Iraq

Abstract: Beset by shifting public opinion and a rising chorus of calls for early withdrawal, the US president has outlined a plan for successfully completing his administration's project in Iraq. But victory means something very different for the US than it does for Iraqis themselves, and defining the agenda on Washington's terms risks prospects for lasting stability.