The Veda holding company was founded in 1994. In the middle of the 2000s Veda was one of the leaders in vodka market in Russia. It occupied the 2nd place in whole Russia market and the 1st in the North-West region. The company had its own liquor enterprise in the Leningrad region (in Kingisepp) and a plant for the low-alcohol cocktails manufacture in Saransk.
In 2005, Kirill Rogozin – the Veda founder died tragically: he was riding a snowmobile across the Gulf of Finland, and ice cracked under it. The younger partner – Aleksandr Matt had to manage Veda on his own in spite of the fact that he did not participate in company’s operating activity before.
Since 2008, all companies that were part of the holding have gradually gone bankrupt. At the same time, executive director of the alcohol department, who was a good expert in distribution area, left the company. According to Rosstat data, in 2007 Veda’s plant in Kingisepp produced only 32.8% volume from the same period last year, the plant in Saransk only 34.9%.
Sources: Business Petersburg – 2018https://www.dp.ru/a/2018/05/28/Desjat_bizneskrahov
Kommersant – 2008https://www.kommersant.ru/doc/868879
PreviousCurrentOwnerKirill RogozinAleksandr Matt and Anastasiia RogozinaLegal form of the company LtdLtdNumber of employees ??
BrandModel of transferInvolved institutionCountryRussian size Waltz BostonMatrix6 Transfer by mixed methods (model1 Family transfer + model 3 Transfer to company executives)Russia…
Anonymous – SETransfer description
The business started as a project where one of the goals was to make an exit. In the year 2012, the company needed capital to finance the company’s next stage of development. Regarding the options, they either wanted a venture capital firm or finding a buyer.
The successor was found in the company. It is a company specializing in buying other companies. Because of that the buying company has a department that is continuously scanning the market for potential companies to buy. Representatives of the two companies also met in different situations and thus the information about the prospective sale reached the buyer.
They used an earnout model where the successor paid the first 72% in 2013 and the remaining 28% in 2016. This was to animate the shareholders to continue to do a good job and help the company continue to grow even after the transfer. The previous owners and all remained in the company. In 2016 when the business transfer was closed only two of the previous owners stopped working in the company. All other persons remained.
The people in charge started thinking about the transfer and in the next step preparing the company for sale in early 2011. The discussion about identifying potential prospects (i.e. a buyer or a venture capital firm) started in Q3 2012. In May 2013, the last paperwork with the successor was completed and in 2016 100% was paid for the company and the deal was closed.
It was a challenge to identify a potential buyer. Initially, they were looking for a venture capital firm. Additionally, it was hard for a relatively small company to find suitable contacts and create enough interest from potential investors.
No, the planning of the new services to be provided was already under way before the transfer. Yet, the new ownership created a more comfortable and safe feeling to really make the efforts. The launching of the new services also went faster.
When you have a growth-oriented mind set you are focusing on buyers/professional investors that are bigger than your company. This situation makes the former owners an underdog when it comes to aspects such as financing and knowledge. The former owner, therefore, recommends persons who plan to sell their companies to include a specialist in the negotiations. Otherwise, it will be an uneven starting point.
The due diligence process was about 2-2,5 months and the seller explains that this process puts pressure on their organization since all information about the selling company it brought up. Everything needs to be transparent which could create a great pressure on the company.
Therefore, the seller recommends other companies that are about to sell to be well prepared for marketing their company, i.e. to make it look as attractive as possible for the potential buyer. This includes the provision of solid financial figures as well as strong intangible values (such as a strong brand, well trained personnel) to show potential new owners the value they will get by buying the company.
The seller also says that you should be prepared that the entire business transfer process takes time, especially if you have a growth plan that requires significant financial capital. This means that you will need to have available sufficient financial capital to make sure both 1) that the company can continue to grow and 2) that you can look for potential buyers who are willing to invest in the company’s continued growth. You don’t want end up in a situation where you are forced to sell the company at a low(er) price just because you run out of money before you find the right buyer.
PreviousCurrentOwnerAbout 50 different shareholders, i.e. mix of founder employees and business angelsAnonymousLegal form of the company LtdLtdNumber of employees 4598
BrandModel of transferInvolved institutionCountryAnonymous5 Transfer to another companyLawyer to write up contractSweden…
Martins Gräv ABTransfer description
While participating in an accelerating program for making companiesgrow, Martin and Lena realized that they were too old to make all the investments and efforts that would be needed to keep growing. Instead, they decided to sell their company since the company had already increased in turnover during the accelerating program.
At first, they wanted someone from inside to take over of the company (i.e. internal succession), but no one was interested. Their second thought was to sell the company to another company they had in mind, but the process dragged on and a deal was never closed. Then they met a representative of another larger company when delivering goods and by chance they started talking about their company and their plan to transfer it. This other company was immediately interested, and the succession/transfer process started.
The new owner could draw on many years of experience in running a company. To increase the likelihood that the company’s values and previous owners’ knowledge etc. could be transferred to the new owner, the previous owner is remaining in the company for at least 6 months. The process is ongoing as the interview is held. The previous employees are also remaining in the company.
The overall process from deciding to sell the company until the previous owner finally can leave the company will take approximately two and a half years.The paper work to make the transfer happen took two months.
The former owner was very well prepared and did not find it challenging. From the sellers’ side, perhaps, most challenging is the mental preparedness to sell your company to someone else.
No innovation, but a new way of working and making the daily work more efficient. The former owner recommended the successor to start using more digital tools to make the work easier for the employees and the new owner. This was software that helps manage and log activities in the company and it was implemented at ones.
Be honest, transparent and well prepared as a seller when you meet with the successor and his/her legal representative. This will shorten the process.
Prepare yourself mentally for the sale a long time before you take the fundamental step, at least two years. It will mean a big change and may turn out being emotionally tough. It is a big change to sell the company you have started and worked in for a long time. You must be 100% sure that you want to sell.
You should involve individuals or organizations specializing in business transfers to master relevant aspects such as legal and economic issues
PreviousCurrentOwnerMartin Ivarsson & Lena IvarssonHylte transport ABLegal form of the company LtdLtdNumber of employees 1032 (no new people were hired but because two companies were combined into one, the number of employees increased).
BrandModel of transferInvolved institutionCountryMartins Gräv5 Transfer to another companyThey worked with a consultant from ”LRF consult – business support organization” who the sellers met through the business accelerator program. They also involved the company’s accountant in the process. The previous owner claims that companies often contact a business broker who takes a percent of the sale profit. They did not, but instead they worked together with LRF and the accountant on an hourly basis. This reduced the costs of the business transfer process.Sweden…
The founder of the company and the owner of the know-how was no longer interested in the development and management of the company. In search of a buyer was involved in a networking, search in the business community. The search lasted about 6 months. The business transfer process took about a month. The main difficulties in the process were caused by the search for a buyer and registration of the transfer of intellectual property and technology to the new owner. At the moment, the technology of transfer and preservation of know-how in the company is not sufficiently developed at the legislative level.
PreviousCurrentOwner1. Omelyanovich Dmitry Alexandrovich 2. Immanuel Kant Baltic Federal University1. LLC Service center Taurus 2. Immanuel Kant Baltic Federal UniversityLegal form of the company LtdLtdNumber of employees 13
BrandModel of transferInvolved institutionCountry5 – Transfer to another companyIn search of a buyer and for advice on the design of the transfer of know-how, the owner addressed to non-profit organizations to support entrepreneurship: «Union «Kaliningrad chamber of Commerce and industry», «Association of SMEs support centers of the Kaliningrad region». Assistance was provided free of charge.Russia…
BAGFACTORY is a non-woven PET bag manufacturer, a market leader in Lithuania and one of the market leaders in the EU. However, the recentgrowth of this company was driven by the transfer of 50 percent of its’ share to the legal entity, so is a great example of good business transfer case.
Originally the company was owned by two individual persons and was oriented to exclusive small orders therefore was not very profitable, but satisfactory at the time. However, over the years the manufacturing equipment of the company has outdated and since the main activity of the company wasn’t very profitable, the owners could not afford the necessary equipment upgrade, which became one of the main reasons of undertaking the transfer’s decision. The owners of business started looking for investment opportunities and got acquainted with a legal entity, which became interested in PET bag manufacturing business on a larger and more innovative scale so has bought 50 percent of its’ share and invested a certain amount to the manufacturing equipment as well as started a regular work optimization process to reduce costs and production time. As a result, the company has the most modern, innovative, state of art equipment on the market, and has been renamed as BAGFACTORY.
The process of the initial business transfer to new shareholders, as well as new ideas and opportunities, has happened because of the shared business values of both sides, which are social orientation, positive thinking and a close-knit team. However, the new owners brought some new ones as well, such as initiative, innovation and ambition, which are vital for successful and profitable business, so were the main factors of the recent success of the company. The process of business transfer took around one year, including negotiations and re-registration of the company.
The main challenges/difficulties of this business transfer case were met meanwhile the transfer, because it was the time of negotiations, where both parties had to agree on (1) their future rights, responsibilities and accountabilities; (2) formation of a new company strategy; (3) the use of investment as well as return on investment (payback procedures); (4) maintaining the most important strategic human resources in the company in order not to lose the know-how. Once both parties agreed onthese strategic decisions, the business transfer was completed smoothly.
The business transfer facilitated implementation of innovations – BAGFACTORY is initiating new research and experimental development projects in order to reduce the use of plastic disposable bags, contribute significantly to the reduction of environmental pollution and achieve its mission – innovative ideas for the development of ECO-friendly shopping bags.
PreviousCurrentOwner100% individual persons50% individual persons50% legal entity Legal form of the company Joint Stock CompanyJoint Stock CompanyNumber of employees 69
BrandModel of transferInvolved institutionCountryhttp://www.bagfactory.eu/5 Transfer to another companyThe main institution, involved in the business transfer process, was a law firm, because business transfer process requires a lot of negotiations and accompanying documents. The services provided were sufficient. The cost of the law firm services is a subject of contract and depends on mutual consensus as well as the scope of work.Lithuania…
The LenSpecSmu company was founded in 1987 by Viacheslav Zarenkov. LenSpecSmu operates in the field of development and construction. The company focuses on residential property for the middle class in St. Petersburg, where it is represented by the brand “Etalon LenSpetsSmu”, and also on construction in Moscow and Moscow region. In 2017 net profit of the company amounted to 7.9 billion , annual turnover was 70.6 billion .
During 30 years working in the real estate market, the “Etalon” Group has built more than 200 properties with total area of more than 6 million square meters. The founder Viacheslav Zarenkov is the author of about 200 patents for inventions and realized over 30 construction investment projects.
Dmitrii Zarenkov started to work in his father’s company in 1998 after getting experience at a leading position in another company. He became deputy director in LenSpecSmu, then he was appointed CEO and finally Dmitrii became the chairman of the Board of directors. For his successful work and achievements Dmitry received numerous awards and prizes. He became “Honorary Builder of the Russian Federation”, “The best Manager of St. Petersburg” and “The best Manager of the Year” on “Golden Manager” competition.
However, at the moment the company’s transfer under its top manager’s control is being discussed in construction industry. In the end of 2017 there was strong decline (by 1.5 times) in stock price of the company. In summer 2018 Viacheslav Zarenkov and members of his family started selling their shares in LenSpecSmu.
Sources: official site of the companyhttps://lenspecsmu.ru/about/news/etalon_group_usilivaet_komandu_menedzhmenta
Business Petersburg – 2016https://www.dp.ru/a/2016/09/22/GK_JEtalon_pokidaet_star
Parlament – 2018http://www.parlamentua.com/item/37619-vyacheslav-zarenkov-vyvodit-svoi-doli-izetalona-%20chtob-potom-obankrotit-gruppu
PreviousCurrentOwnerViacheslav ZarenkovDmitrii ZarenkovLegal form of the company LtdLtdNumber of employees More than 5.000More than 5.000
BrandModel of transferInvolved institutionCountryEtalon LenSpecSmu3 Transfer to company executivesRussia…
The VimpelCom company was founded in 1992 but the brand Beeline appeared in summer 1993. Today VimpelCom has 58.8 million mobile communication subscribers. In 2018 net profit of the company amounted to 27 billion , annual turnover was 73.1 billion . The headquarters is located in Moscow.
Dmitrii Zimin is an academician of the International Academy of Communications and the author of more than 100 scientific works and inventions. Dmitry founded VimpelCom company when he was 63 years old, together with a young American entrepreneur – Augie Fabela II.
In 1996, VimpelCom became the first company in the history of new Russia, which placed its shares on the New York Stock Exchange. In May 2001, Dmitry Zimin has left the General Director position: “VimpelCom is my favorite child. But children grow and grow up… At one moment I felt that its prospects are greater than I can manage”.
Dmitry sold his shares to Alfa Group. He believes that it would be wrong to transfer such large company as VimpelCom to his children. They had never participated in its management processes. And he has not prepared any successors. Nevertheless, the Board of Directors awarded Dmitry the title – “Honorary President and Founder of VimpelCom.” Dmitry is currently holding this post and is involved in consulting activities for the company.
Sources: Invest Rating – 2017https://www.invest-rating.ru/famous-investors/?id=8807
Forbes – 2010https://www.forbes.ru/ekonomika-column/lyudi/53898-kak-statbogatym-%20i-schastlivym
PreviousCurrentOwnerDmitrii ZiminAlfa GroupLegal form of the company LtdLtdNumber of employees ???21.700
BrandModel of transferInvolved institutionCountryBeeline2 Transfer to one or more external (person/ subject)Russia…
Panelian kone OyTransfer description
In this case the founder had children, but none of them nor other closepeople were willing to continue the business. Company was more or less for sale for years, but without success. The price required was not – according to professional business developer – in line with the opportunities of the business (At the time business became for sale the interest was mostly set on first mobile services and solutions). The sales announcement was given, among the other market places and business dealers, also to Mr. Kimmo Saaristo, Business Transfer Coordinator of Satakunnan Yrittäjät.
Mr Petri Hohtari, on his part, had filed his data in the site collecting the information of persons interested to acquire an existing business and / or company. Soon after that Pori Enter, the municipal business service of Pori district, contacted Mr. Hohtari and directed him to Mr. Saaristo, who had a number of considerable businesses to be presented. From a portfolio of potential companies three companies were selected for closer review. Mr. Hohtari found Panelian kone to be the most interesting of these and negotiations started. The negotiations took one month and leaded to agreement satisfying both participants.
Finally, it was found a successor who agreed to buy the company – if the founder would stay for certain period in company to guarantee the continuum and transfer the tacit knowledge. The company has grown measured in both number of employees and turnover, and the former entrepreneur is now retired.
As a lesson of this case Mr. Hohtari emphasizes the importance of professional and reliable expert with long experience in business transfers to be involved in the case.
Matti Eskola (majority)
Petri Hohtari (majority)
Legal form of thecompany
Number of employees
Model of transfer
2 – Transfer to one or more external (person/subject)
Business Service Enter (Now part of Prizztech Ltd) contacted by acquirer.Business Transfer Services of Satakunnan Yrittäjät,contacted by bothparties. Services were free, and only potential extra costs were invoiced.The service was limited to get parties in contact witheach other. In thenegotiating and contractingphases an experienced expert could havebeen helpful.
Reported by Kari Lilja and Sirpa Sandelin…
Anonymous – FITransfer description
Original company was founded in 1980’s by one entrepreneur. In the end of 80’s the company was growing and another person was joined to the company as minor owner. The reason for this was – as was found out later – that to be able to arrange the funding – the company needed a person trusted by bank to guarantee the loans. In August 1991 Finland collapsed to the greatest depression ever and this company went into liquidation too within the wild period of 1991-1993. To be able to pay the debts caused by loans he had guaranteed, the former minor owner founded the new company, which bought the business and tools and equipment needed from bankrupt estate. The main bank of former company agreed to finance the new business, given that the former major owner was not in any part involved in new business.
The company grew up, both in turnover and personnel, and both the debt caused by bankruptcy and the new loans became paid off. As the years passed by, the entrepreneur got older and finally it was his turn to retire. Unfortunately, he had no relatives nor other close persons willing to continue. However, a few years before he had hired a capable man with good relationships to heavy industry, and after long negotiations, the business and the name were sold to new company founded by this employee. Funding of the deal was arranged with the help of the relationships named above, and via that way the company also got another branch, becoming one of the biggest operators in Finland in both of its branches.
Lesson to be learned from this case is that sometimes the succeeded business transfer requires hard decisions, even bankrupts, not to get out of debts, but to clean up the reputation.
Majority and minority
After first 1, after 2nd 2
Legal form of the company
Number of employees
After first 4, after 2nd 6
Model of transfer
2 – Transfer to one or more external (First) 4 – Transfer to a cooperative to employees of the company (Second)
Bank who agreed to continue with new company, although the rate of interest was higher, new auditor and bookkeeper, In the second transfer in addition to bank, auditor and bookkeeper, the new co-operation partner had a big role.
Reported by Kari Lilja and Sirpa Sandelin…
Redmond group was founded in 2006. Today Redmond is one of the most famous kitchen equipment brands in Russia. In 2016 Redmond occupied almost 20% of the market with 50 billion rubles volume. Company’s production capacity is located in Asian countries but logistics, trade and intellectual branches of the group are concentrated in St. Petersburg.
In April 2016 one of the Redmond group main co-founders – Maksim Ageenko passed away. After that, a long-lasting conflict began between Maksim’s wife Svetlana and five children from two marriages and his business partners. The main reason of the conflict was clarification of the fair value of the share left by Maxim Ageenko to his family. Maksim’s partners – Andrei and Diana offered 240 million rubles to Maksim’s wife and his children, taking option to buy their stocking on a priority basis, but they refused.
Svetlana Ageenko and Maksim’s filed seven lawsuits to the Arbitration Court against the Redmond group companies. They demanded providing them with financial and corporate documentation for the entire period of company’s activity, and also challenged two decisions of the general meetings.
The corporate conflict led to disappointing results: Diana Zheliaskova, who became the General director, is now in prison, the heirs could not receive as much money as they wanted, and the conflict has not been solved yet.
Sources: Business Petersburg – 2017https://www.dp.ru/a/2017/10/23/Multivarka_v_ogne
Komsomolskaya Pravda – 2018https://www.spb.kp.ru/daily/26779/3816171/
PreviousCurrentOwnerAndrei Siniavin Diana ZheliaskovaMaksim AgeenkoAndrei SiniavinDiana ZheliaskovaSvetlana, Evgenii, Artem, Maria and Aleksandr AgeenkoLegal form of the company LtdLtdNumber of employees ??????
BrandModel of transferInvolved institutionCountryRedmond1 Family transferNoneRussia…
Blankeneser Landstrasse 722587 Hamburg, GermanyTel: 040 – 822 447 – 0Fax:040 – 822 447 – 22Email: email@example.com
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