turnaround management & business advisory services (tam/bas) programme nestor partners
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TurnAround Management & Business Advisory Services (TAM/BAS)
Programme
Nestor Partners
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• TAM and BAS are complementary technical assistance programmes that promote economic transition in the EBRD countries of operation through a multi-tiered approach
• TAM/BAS combines direct assistance to the private sector at the enterprise level with systemic market development interventions
• TAM/BAS projects with enterprises have historically been 100% Donor Funded but now a portion is funded through the EBRD Shareholders’ Special Fund
• TAM/BAS is a not-for-profit entity and part of the EBRD
An Overview
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“The purpose of the TAM/BAS Programme is to promote the economic transition through advice and mentoring at the enterprise level and the development of a sustainable infrastructure of business advisory services, and to contribute to improving the policy and regulatory environment for business.”
TAM/BAS Mission Statement
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TAM/BAS key factsTAM/BAS key facts
•BAS in a nutshell
•For enterprises with 10–250 employees.
•PurposeTeaches businesses to use external business services. Develops local consultancy sector.
•MethodLocal office: 3-4 local stafffacilitate short-term consultancy projects. Grant provided for maximum 50% of project cost up to €10,000.
•TAM in a nutshell
•For companies with 200–2000 employees.
•PurposeRestructure and introduce new management culture.
•MethodIndustry-specific, senior managers from economically-developed countries advise SMEs over a period of 18-24 months. No local office.
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Which companies does Which companies does TAM/BAS assist?TAM/BAS assist?
TAM:•CEO and Senior management must have the ability to benefit from a project and be prepared to commit the necessary time and effort
BAS:•company should have little or no previous experience of using external consultants, and/or not have the resources to finance a complete project.
In addition, TAM and BAS enterprises must: •be private companies or have irrevocable government commitment to privatisation
•have an acceptable debt structure
•be able to demonstrate potential for growth, a genuine need for business advice and a capacity to absorb the assistance given
•be majority privately and locally owned
•not be involved in military products or services, gambling or tobacco, banking and financial services.
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Countries of operationCountries of operation
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The TAM ProgrammeThe TAM Programme
Primary Objectives:
• Improve the expertise of senior management
• Assist in improving enterprise performance and attracting investment
Other Objectives:
• Support a business environment conducive to enterprise and export development
• Improve ability of enterprises to deal with market forces and develop into competitive players in their industry sectors
• Stimulate sectors which demonstrate high growth potential and/or produce goods with a high value-added component
• Informed contribution to EBRD policy dialogues
• Other TAM interventions include market development activities, trainings, visibility and dissemination
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The TAM ProgrammeThe TAM Programme
Overview:
• Transfer commercial and technical know-how from experienced, industry specific directors and senior managers from economically developed countries to SMEs over a period of 18-24 months
• Development of improved management skills and management culture
• Projects frequently involve complete restructuring, encompassing all aspects of the enterprise
• Committed and active enterprise management necessary in each project
• Rigorous screening and independent selection of enterprises as well as advisers
• Termination of projects where beneficiaries fail to meet obligations and commitments
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Results:
• 16 years in operation, over 1,800 projects carried out to date• 84% of projects evaluated as “successful” or “highly successful” by an
independent evaluator (EBRD Evaluation department reported over 90% success rate)• Over €109 million in donor funding (EU largest donor)• Currently operating in 21 countries (30 countries historically)
Strong, competent enterprise management leads to:
• Jobs being saved as well as created
• Better products and increased sales
• Improved profitability
• Internal industry sector restructuring, which is more effective than externally imposed solutions
• “Transition impact”: the development of strong enterprise management in transition countries is a key to economic development and sustainable growth. Management skills become a resource remaining long past the termination of a project.
TAM Results
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• Over 10,000 projects in 30 countries to date:- TAM: over 1,800 projects in 30 countries
- BAS: over 8,700 projects in 27 countries
• Raised over €200 million of donor funding to date:- More than 20 bilateral and institutional donors
- EU has been the biggest single donor:
over €60 million through EAR, PHARE,
TACIS and now IPA
TAM/BAS -an impressive track record
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TAM BAS TAM/BAS
Turnover € 17.5 billion € 15 billion € 27 billion***
Workforce Helped
840,000 480,000 1.1 million***
Success Rate* 84% * 90%** -
TAM/BAS Impact
*EBRD evaluation department reported higher than 90% success rate in TAM projects**EBRD evaluation department has rated the BAS Programme as “Successful”
***Some enterprises received both TAM and BAS projects. Total turnover and workforce helped does not double count these projects.
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TAM/BAS works closely with Banking to:
• Refer enterprises and identify potential banking pipelines on a regular basis, for direct EBRD investment and for financing instruments through intermediaries
• Identify current investments that can benefit from “parallel” TAM/BAS assistance
• Identify enterprises that would benefit from TAM/BAS assistance prior to being considered for an investment
• Recommend industry specific TAM advisers for non-executive board positions
• Recommend industry specific TAM advisers for banking due-diligence and consultancy
TAM/BAS and Banking
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Banking linkages to date:
• EBRD has financed 255 investments in 195 TAM and BAS companies (directly or indirectly through EBRD supported financial intermediaries)
• Investments amount to €885 million:
€586 million are loans and €299 million are equity investments
• A total project value of €1.7 billion has been mobilised
Banking linkages in 2009:
• 88 company referrals between TAM/BAS and EBRD
• 12 EBRD investments in TAM/BAS companies
• 23 recommendations of TAM advisers to EBRD due-diligence/consultancy
• 6 referrals of non-executive Director appointments
TAM/BAS and Banking- results
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The TAM/BAS management team is based at the EBRD offices in London:
EBRD
One Exchange Square,
London EC2A 2JN,
UK
Tel: +44 20 7338 7356
Fax: +44 207 7338 7742
E-mail: [email protected]
Contact