Selling a Business - Russia Exit

Selling a Business When Exiting Russia: Strategic Decisions in a Changing Landscape

Amid the transformation of the economic environment, many business owners are considering a full or partial sale of assets as the optimal way to preserve capital and minimize risks.

🔹 Why Now?

• Changing market conditions – Adapting to new economic realities

• Capital relocation – Shifting investments to more predictable jurisdictions

• Reducing operational and regulatory risks

• Opportunity to exit at peak value before further legislative tightening

📌 Exit Options: Full vs. Partial Sale
1️⃣ Full Business Sale – A Clean Exit with No Liabilities
✔ Immediate monetization of assets
✔ Complete transfer of management responsibility
✔ Opportunity to reinvest proceeds in new international ventures

"It is better to sell at the right time than to wait for perfect conditions that may never come."

2️⃣ Partial Sale (Partnership/Joint Management)
✔ Retaining ownership share and future income while mitigating risks
✔ Gradual exit with transaction oversight
✔ Transfer of operational control to local partners

🚀 How We Ensure the Best Deal Terms for You
🔎 Business Valuation & Sale Preparation:

• Market value assessment considering current conditions

• Asset structure optimization for enhanced attractiveness

• Legal due diligence (asset clearance verification)

🤝 Buyer Sourcing:

• Database of vetted investors (including international funds)

• Confidential negotiations for discreet transactions

• Competitive bidding to maximize price

📑 Secure Capital Repatriation:

• Deal structuring compliant with currency regulations

• Assistance in transferring funds to preferred jurisdictions

• Tax-efficient strategies

💡 Case Study: Sale of an FMCG Business to a Foreign Investor (2023)

• Preparation time: 4 months

• 25% price increase through competitive bidding

• Secure fund transfer via a favorable jurisdiction

📞 Your Next Step
Interested in understanding your business’s real value in today’s market?
Ready to discuss an exit strategy with minimal risks?

👉 Request an urgent consultation—define the optimal path today!

"Sometimes the best investment is a well-timed exit."

[Request a Consultation] | [View Our Deal Portfolio] | [Urgent Business Audit]

Corporate Advisor LLC – Your Trusted Partner in Times of Change

 

1. Why is Business Sale Particularly Relevant Now?

• Changing Market Conditions: Sanctions, regulatory risks, and economic instability are significantly complicating business operations.

• Capital Relocation: Most investors are prioritizing asset transfers to more stable jurisdictions.

• Risk of Legislative Tightening: Potential new restrictions on capital outflow, currency controls, and forced sales may be implemented.

2. Full vs. Partial Sale
✔ Full Sale
Advantages:
• Immediate exit with complete risk elimination
• Opportunity to reinvest proceeds abroad

Disadvantages:
• Loss of business control
• Valuation challenges amid market uncertainty

✔ Partial Sale (Partnership/Joint Management)
Advantages:
• Retention of equity stake and future income streams
• Gradual exit with reduced tax and currency risks

Disadvantages:
• Continued exposure to Russian market risks
• Potential conflicts with new partners

3. Business Sale Preparation
• Asset Valuation: Comprehensive assessment incorporating both financial metrics and risk factors (sanctions exposure, liquidity)
• Structural Optimization: Identification of core assets and elimination of problematic liabilities
• Legal Due Diligence: Compliance verification with current regulations (particularly capital transfer rules)

4. Buyer Identification
• Local Investors: Often willing to acquire businesses at discounted rates
• International Funds: Show interest in undervalued assets, though may face sanctions-related limitations
• Strategic Partners: Potential asset swaps or offshore exit structures

5. Capital Repatriation
• Repatriation Structures: Utilization of favorable jurisdictions (UAE, Turkey, Kazakhstan)
• Tax Optimization: Dividend payments, royalty schemes, and debt structuring
• Currency Risk Mitigation: Conversion to stable currencies (CNH, AED) or cryptocurrencies (where permissible)

6. Recent Transaction Examples (2023-2024)
• FMCG Company: Sold for $50M (+25% post-tender)
• IT Business: Exit via stake sale to Asian investment fund
• Manufacturing: Partial management buyout with full acquisition option

Next Steps

1. Business Valuation: Determine current fair market value

2. Exit Strategy Selection: Choose between complete or phased divestment

3. Document Preparation: Legal and financial cleanup

4. Buyer Procurement: Through private channels or auction

5. Deal Structuring: Secure fund transfer mechanisms

For Urgent Exits, Consider:
• Fast-track sale (typically at 20-30% discount)
• Offshore transaction (if foreign holding structure exists)
• Cross-border asset swap (M&A alternative)

👉 Tailored Approach Required
Each business requires customized solutions. Need professional assessment?

[Request Consultation] | [Transaction Examples] | [Urgent Business Audit]

"In turbulent times, seizing the right exit opportunity becomes paramount."

This version:

• Maintains professional tone while improving readability

• Uses precise financial/legal terminology

• Structures information for quick comprehension

• Presents Russian market specifics in internationally understandable terms

• Includes clear CTAs for further engagement

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