Showing papers on "Exit strategy published in 2017"

Politics, Exit Strategy and Political Settlement in Sierra Leone: A Critical Analysis of a Laboratory Experiment (1991-2015)

Abstract: A glance at key indicators—in terms of growth forecast and stable elections—will project Sierra Leone as a political settlement model for a post-conflict state. Sierra Leone has been an important laboratory for UN and international donors’ interventions and thinking. However, efforts by the international donor community to decentralise power to the margins, both geographically and demographically, have failed. Instead, this focus on the institutions of governance has allowed the same elite to maintain power. Sierra Leone today shares similar socio-economic and political conditions with the Sierra Leone before the outbreak of the civil war. A detailed analysis of the country’s socio-economic trends, its political institutions and the logic and dynamics of violence show a disturbing picture. While the international community considered that an exit strategy was feasible, the political settlement remains an experiment in that it is detached from everyday life and livelihood concerns of Sierra Leonean...

Stabilisation in the Congo: Opportunities and Challenges

Abstract: Stabilisation is often interpreted as a matter of military interventions in so-called ‘fragile states’, and/or as technical and development solutions to what we argue are political problems. However, an often poorly understood stabilisation strategy is the revised International Security and Stabilisation Support Strategy for the Democratic Republic of Congo (DRC). This strategy engages communities and authorities at local and national levels in dialogues, in order to identify causes of and develop solutions to conflicts. Stabilisation in the DRC, we argue, becomes a matter of targeting deep-rooted political and economic manipulations in the country’s eastern region. This strategy, if fully endorsed, provides the first coherent and thorough approach to stabilisation in the DRC, an exit strategy for the UN mission (MONUSCO) and an opportunity for learning for other UN operations.

Exit Strategy for Aid Programs: Planning Exit before Entering

Abstract: As aid interventions by nature are temporary, they will eventually be withdrawn. Reasons and circumstances of withdrawals vary since withdrawals can be part of a strategic approach to long-term sustainability, a change in organizational priorities, or a political decision made at a higher level. A growing international demand for effective and sustainable outcomes of aid programs emphasizes a proper exit and exit strategy. However, a successful exit takes a well-planned strategy at early stages of aid programs and significant amounts of resources. This study reviews approaches to exit and exit strategies at a program level, and common elements of a viable exit strategy including setting an exit timeline, establishing specific criteria and indicators, identifying key actors, and building a monitoring and evaluation system. These elements need to be guided by transparency, inclusion, predictability, obligation, and flexibility.

Exploring Entrepreneurs Exit Strategies in Indonesian Small And Medium-Sized Entreprises

Abstract: Entrepreneurial exit strategy is a critical component in entrepreneurial process, where a well-prepared strategy helps entrepreneurs to reduce the potential loss of their current business, prepare them to face the post-exit era, and improve the chance of re-entering business after quitting. While such benefits might be true in the context of developed countries, we are critical of their existence in the context of less developed nations. We enrich the entrepreneurial process literature by examining entrepreneur’s exit strategy and the factors influencing it in the novel context of the South-East Asian - with a focus on Indonesia. We interviewed 21 Indonesians small and medium-sized enterprises (SMEs) entrepreneurs with diverse backgrounds, and our findings suggest a framework for entrepreneurial exit that constitutes four major strategies, which are resignation, asset sales, business sales, and succession. In addition, our research finds several models explaining how the entrepreneurs select each of these strategies.

Assessment of Efficiency of Innovation Projects Financing through the Exit Strategies of Venture Capital Investors

Abstract: The essence of venture (risk) business consists in providing financial resources to innovative companies, which have no other sources of funding. Venture capital investor invests money capital in exchange for a share in the company. Peculiarity of venture capital investors is that when investing funds in any investment project, they expect at the same time to exit out of it in a few years through a most preferred manner. The article evaluates alternative exit strategies of investors from venture capital, which can be classified as both desirable and undesirable (negative). In this article all options of the exit strategies are ranked according to descending order of their attractiveness: from IPO (Initial Public Offering) to write-offs. As a result of the conducted analysis of the venture and direct investment market in the Russian Federation for the period of 2006-2014 it has been identified that the most frequently used exit is that of selling own shares to a strategic investor. Statistics has demonstrated that the most effective exit through IPO was used by investors not too extensively. However, relatively small number of write-offs was noted that is a positive feature of the Russian market of venture capital. In the future, such options as IPO and the buy-back will have the greatest prospects.

EMU as a Sustainable Currency Area

Abstract: EMU’s governance framework was incomplete at its inception. Its institutional fragilities allowed for the building up of competitiveness and fiscal disequilibria in some Member States during its first 10 years and left the Eurozone unprepared to cope with the sovereign debt crisis. While some of those weaknesses have been addressed in response to the crisis EMU’s governance framework remains incomplete to date and therefore vulnerable to adverse market and political-economy pressures. This chapter argues that EMU—or at least the membership of individual countries—will not be sustainable without national adjustment capacity and willingness to implement economic reforms. Those reforms are also a pre-condition for promoting sustainable growth and hence a credible crisis exit strategy. Although EMU’s resilience could still be guaranteed through other mechanisms in the absence of sufficient national adjustment capacity, notably a banking union with an orderly state bankruptcy regime, even if feasible it would mean a rather different model of European integration.

Challenges Influencing Peace Building Strategies in Somalia: A Study of AU Mission in Somalia (AMISOM)

Abstract: Somalia has been caught in a wave of violent conflicts since collapse of the central government in the early 1990s. Different armed militant groups have been controlling most parts of the failed state. Al shabaab remains a major threat to the weak Federal Government of Somalia. Different peace support operations have been mounted in the past yet durable peace remains elusive. Previous peace support operations were faced with a lot of challenges prompting UN and the international community to abort the interventions. UNOSOM I and II failed to meet their mandates with the former ending after an outcry by the American citizens for US to withdraw its forces out of Somalia due to heavy casualty that was incurred by the marine forces. The Special Forces suffered fatalities during the mission dubbed Gothic the Serpent which was aimed at capturing the notorious warlord General Farah in the murky streets of Mogadishu. Such failures of the past peace support operations are still mirrored with the AMISOM. In this regard, this article evaluated the challenges AMISOM faces in influencing peace building strategies in Somalia. The researcher targeted the AMISOM troops and the locals. The primary data was collected through interviews and questionnaires. Secondary data was gathered and reviewed from journals, books, magazines, newspapers and published proceedings that corroborated the primary data. The study found out that the mechanism lacks appropriate systems for intelligence and information gathering, the AMISOM is poorly equipped with lack of sustainable funding sources and weak Federal Government of Somalia complicates the peace support operations since it is marred with internal wrangles. The study recommends that alternative sustainable sources of fund to be established; and AMISOM should enhance capacity building for the National Security Agencies (Somalia National Army, Police Force and National Intelligence Service Agency) as part of exit strategy. The findings should help in designing peace support operation practices, processes and strategies for ensuring durable and sustainable peace in Somalia and other war torn states.

SASOL. From State-Owned Enterprise to Chemical Leader: Management and Strategy, 1952–1980

Abstract: In 1951, the South African state established the South African Oil and Gas Corporation (SASOL), which became the world leader in the manufacturing of synthetic fuel. By the early 1970s, management insisted on privatization and the listing of the company on the Johannesburg Securities Exchange. This chapter investigates the making of the managers of SASOL: their personality traits, their background (as sociocultural context and education) and their relationship with government’s exponents as well as their industry links. The chapter shows the role of independent professional management in securing operational efficiency and its impact on facilitating an exit strategy from the state ownership.

Military involvement in post-conflict transformation in African peace-building

Abstract: Post-conflict transformation is a difficult task, since renewed violence frequently flares up after peace treaties have been signed. Failure to end conflict often results from misinterpretations of the roots or an inability of the conflict to create suitable exit strategies for military forces. Reintegration of soldiers and non-state armed actors entails delicate and complex procedures, which are central in maintaining security in a newly created democracy. These all point to the important role of the military in post-conflict transformation. The focus of the study on which this article is based, was on evaluating the role and place of military forces in post-conflict peace-building activities. These activities relate to diverse peacekeeping experiences in Africa, and focused on flaws and challenges in post-conflict peace-building missions in the Democratic Republic of Congo, Sudan and the Central African Republic; post-conflict transformation and development; security sector reform and South Africa’s participation as member of the Southern African Development Community.

Turning The Middle Market Upside Down: Unitranche Financing In U.S. Middle Market Leveraged Buyouts

Abstract: Since the 1960’s, the leveraged buyout (LBO) industry has grown to represent a pillar of American finance. While Henry Ford’s management buyout in 1919 is often cited as the “first” LBO, these transactions became big business in the 1980’s. In 2015, aggregate private equity deal volume hit $634 billion, or around 3% of total U.S. market capitalization. The strategy has waxed and waned in popularity over the years, and has often earned a somewhat negative reputation with “Main Street” Americans. Hostile takeovers, “slash-and-burn” management styles, and corporate greed have cast a shadow on an industry largely portrayed to the public by books and movies like 1987’s Wall Street and tarnished by scandals such as Michael Milken’s conviction for racketeering and securities fraud in 1990. While the streamlining necessary to pay down large debt loads can lead to layoffs and liquidations, LBOs began as a means of providing viable growth and/or exit strategies for hard-working business owners. This paper analyzes the most common forms of middle-market LBO financing.

Firm vs. Individuals: The Case of an Acquisition of TTPCom and Motorola

Abstract: For nearly half a century scholars and practitioners have been looking for an integrative theory to expand the success of Mergers and Acquisitions (M&A). Most research, however, reports that M&A's are invariably unable to live up to their expected value. This research reviewed acquisitions of technology based firms and identified the most significant factors affecting their desire to follow M&A as an exit strategy as well as its impact and results. The case study presented is one of a number of cases collected from technology startups acquired between 2000 and 2005 in the ICT sector. Using semi structured interviews, observations and secondary sources the case provides rich details of the acquisition and its outcomes. The conceptual framework that guided the original study integrated a wide range of theories, including those of strategic management, M&A in general, organizational studies, international business management and technology management. The key finding highlights the importance of the individual verses the firm as a variable both in research as well as when approaching M&A scenarios in industry.

Exit Strategies, Capital Flight and Speculative Attacks: Europe's Version of the Trilemma

Abstract: In the winter 2011/12 a wave of internal capital flight prompted the ECB to abandon its exit strategy and to announce an unprecedented monetary expansion. We analyze this episode in several dimensions: (i) by providing an event-study analysis covering key variables from national central banks' balance sheets, (ii) by rationalizing their patterns in a portfolio balance model of the exchange rate, augmented by institutional characteristics of the TARGET2 system, and (iii) by proposing a theory-based index of exchange market pressure within the euro area. We argue that the euro area entails an inherent policy trilemma that makes it prone to speculative attacks.

Determinants of private equity exit strategies in South Africa

Abstract: Thesis submitted in fulfilment of the requirements for the degree of Master of Management in Finance & Investment in the Faculty of Commerce Law and Management Wits Business School at the University of the Witwatersrand

Trade Sale versus IPO as Exit Strategy - An Empirical Analysis of European and US VC Backed Biotechnology Companies

Abstract: This paper studies the influence factors that characterize a trade sale versus an IPO exit strategy of VC-backed biotechnology companies. Using a dataset of 142 European and US privately held companies, exiting between 2005 and the second quarter of 2014, this paper addresses VC investment structure variables as well as firm- and product-specific variables to examine the decision of VCs to either use the trade sale or the IPO strategy. It was found that the IPO exit strategy calls for higher investments, is financed by more investors, requires more financing rounds, and takes longer for VCs to exit. An interdependency of these four variables is shown. Additionally, firms with pre-clinical products show higher probabilities for trade sale exits, whereas firms with marketed products and/or revenues are more likely to go public. Furthermore, the size of a firm is positively related to the probability of an IPO exit. Finally, firms whose lead product belongs to the field of oncology or is biologic in nature, and/or firms with technology platforms do not show a higher probability to exit via one of the two exit strategies considered.

Integrating Microfinance and Cooperatives for Jobs Creation in Tunisia

Abstract: Although Tunisia has completed its political transition toward democracy, its economy remains fragile and faces huge challenges. Professional insertion of young people in the labor market is among the top economic priorities of the country. Sound public policies with the objective of creating employment opportunities on a short-term horizon have to support the implementation of structural reforms aiming at boosting the private sector, improving the labor market and restructuring the education system. This paper is a contribution to the discussions on short-term solutions to the youth unemployment, which may accompany structural policies over the long term. We propose a jobs creation program for the youth including several components. The implementation of the proposed program assigns an important role to the government in terms of training, incentives to involve the private sector and in terms of funding. The originality of the proposed program is in linking microfinance to cooperative structure; two efficient tools against social exclusion and which are underutilized in jobs creation in Tunisia. The financial participation of the government is proposed according to a specific funding mechanism of Islamic microfinance: decreasing partnership. This mode of financing allows for a full public financing of the cooperatives' capital with an exit strategy after several years, incentivizing the cooperators to generate sufficient profits to buy the government shares

Integrating Microfinance and Cooperatives for Jobs Creation in Tunisia

Abstract: Although Tunisia has completed its political transition toward democracy, its economy remains fragile and faces huge challenges. Professional insertion of young people in the labor market is among the top economic priorities of the country. Sound public policies with the objective of creating employment opportunities on a short-term horizon have to support the implementation of structural reforms aiming at boosting the private sector, improving the labor market and restructuring the education system. This paper is a contribution to the discussions on short-term solutions to the youth unemployment, which may accompany structural policies over the long term. We propose a jobs creation program for the youth including several components. The implementation of the proposed program assigns an important role to the government in terms of training, incentives to involve the private sector and in terms of funding. The originality of the proposed program is in linking microfinance to cooperative structure; two efficient tools against social exclusion and which are underutilized in jobs creation in Tunisia. The financial participation of the government is proposed according to a specific funding mechanism of Islamic microfinance: decreasing partnership. This mode of financing allows for a full public financing of the cooperatives' capital with an exit strategy after several years, incentivizing the cooperators to generate sufficient profits to buy the government shares

A Review on Effective Implementation of Technological Venture Capital Strategies by Ayandeh Bank

Abstract: One of the best ways for achieving success in an organization is by identifying, applying and implementing efficient strategies. Strategy is a tool for making organizational objectives such as long term goals, act plan and preference for resource assignment. Strategy is responding to opportunities, external threats, internal strengths and weaknesses that affect the organization. Organizational strategy includes important and basic decisions made by CEOs and top managers for their organizations. Decision about the differentiating abilities of the company, competitive advantage of company for representing value to customers in every part of business and the activity field of company are among the most important ones. It should be pointed out that the strategy must affect all daily decisions of managers and staffs of the company and determines the principal framework of the company and all members of the organization; decisions such as how to administrate various parts of company, trading of company, potential markets for the business, how to measure success and so on. Meanwhile, in the current review paper, we will present a review on effective implementation of technological venture capital strategies by Ayandeh Bank.

Early Exit from ECB Bond Purchase Program Could Reduce GDP Growth and Inflation

Abstract: The European Central Bank is planning a gradual reduction of government bond purchases under the asset purchase program it initiated in 2015. The present study by the German Institute for Economic Research analyzes the potential macroeconomic implications of different exit strategies. The authors examined the potential effects of a reduction in net purchase volume, an early exit, and a faster exit from the program on output and inflation in the euro area. Model simulations showed that economic growth and inflation rates would decrease in all three scenarios. However, the effects of the scenario with reduced asset purchases are less severe than those of an exit from the program that is earlier or faster than expected. In particular, an early exit from the program should significantly affect inflation rates, an effect that the European Central Bank should factor into its decision-making process.

Planning a market exit strategy for manufacturers of consumer goods when entering foreign markets

Abstract: Aim: The internal market for manufacturers of consumer products companies is often too small in order to grant long-term success. Therefore, companies expand and enter foreign markets. This paper presents a planning process for market penetration for the selected foreign market, which will show the possibility of a withdrawal and shows also whether an exit scenario is planned by manufacturers of consumer products and when companies tend to think about a market exit.Design / Research methods: First, the literature was studied. Based on this, hypothesis were prepared. This was followed by a telephone survey of decision-makers from German manufacturers of the consumer products companies. Conclusions / findings: A planning process for market penetration was developed, which shows next to the market entry also the market exit. Additional this paper shows that manufacturers of consumer products companies can be better prepared for a market exit than companies without an exit strategy, in particular, if the manufacturer sets out relevant economic parameters for the foreign market which determine whether to remain in the market or leave.Originality / value of the article: When analysing literature on planning processes for market entry, it becomes clear that an exit strategy is not planned. This may indicate that the authors did not consider a market exit and/or anticipate this as a worst case in their market entry assumption.Implications of the research: The last market entry of the surveyed companies usually occurred recently. For market exit results to be determined, a further consultation of the companies examined should be undertaken over a longer period of time.

An exit strategy from capitalism's ecological crisis

Abstract: An effective exit strategy from the ecological crisis does not lie within the broad dichotomy of alternative policy prescriptions: those advocating the reform of capitalism using the same mechanisms which have embedded the ecological crisis (e.g., ecological economics, steady-state economics); and, those proposing a new albeit highly unlikely socio-economic system (e.g., ecological Marxism, socialist ecology). A significant shift in our thinking is required to design a strategy directed at the interdependencies between the spheres constituting capitalist social and economic organisation and delivered by a reconceptualised form of state capitalism.

Downsizing - an exit strategy from the crisis?

Abstract: In its managing functioning, the management of each company undertakes goes through a range of activities to improve organizational efficiency, productivity and competitiveness, depending on the current objectives. If a priority imposes to reduce costs and thus increases efficiency, it has been used frequently as a downsizing strategy for the last two decades. Downsizing is a decrease in the size of an organization, it usually goes through a reduction in the number of employees but it is not limited to this. As with any strategy, there are many pros and cons, and effects depend on the application. In order to be successful it has to be planned and actionned on time as a business part strategy and part of a specific company plan. However, even when the consequences of certain changes resulting of a market reduction and the poor results of the company, changes in technology and etc., with an adequate plan and its application, it can lead to positive results for a takeover. Otherwise, results can be negative for the employees as well as the company and to the entire economy.