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Strategic Planning: Road to Exit
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Strategic Planning: Road to Exit

Published on 20/01/2023
Contributor(s): Jean-Marc Legrand

TheClubDeal is a Venture Capital & Private Equity Firm strongly driven by applied governance principles.

What is Strategic Planning and the “Road to Exit”?

Beyond governance mechanics and metrics used to support regular governance meetings (Boards of Directors, Audit Committees, Shareholder’s Meetings, …),  these shall also have focus times, typically allocated to specific quarters each year, as to address specific value-creating matters.

The 4th Quarter: Budgeting Time

Putting together a budget is a tactical imperative. It sets agreed-upon financial objectives and the necessary operational metrics to achieve these. Operational metrics may also relate to intangible metrics, themselves constitutive of goodwill.

Read more in our recent Budgeting Article.

The 1st Quarter: Road to Exit & Strategic Mapping

At the time of writing, this is the period we are in. Once again, it is a time to create strategic value.

Once a new fiscal year has been launched, the common objectives shared by the staff, founder(s), and investors, are translated and contextualised with the assistance of TheClubDeal, in terms of the company’s medium to long-term strategic plan and perspective, into actionable metrics for the governance bodies.

We call it the “Road to Exit”.

It starts with agreeing on a putative year for an exit (compared to the liquidity meeting clause in a shareholder’s pact). This date allows us to set up a programme that will be “Exit – (minus) [X]” years to devise the necessary steps so to maximize chances of having created value, financial and intangible, as to ultimately monetize them.

This exercise is a strategic mapping that enables all stakeholders to set justified expectations and contributions to the overall objectives.

The 2nd and 3rd Quarters: Market Update

As another time in the year to focus, we strive to support the management in understanding the underlying trends of the markets they act in. Who are the competitors, their patterns? We call this the “competitive watch”. What are the recent transactions (take over, mergers, listings…)?

This structural search for insights in the respective markets of our portfolio companies supports the permanent search for competitiveness. It may also give insights as to potential “buy and build” goodwill creation.

Throughout the year, TheClubDeal will support its portfolio companies in gaining operational and commercial traction.

In summary:

Good governance is the management of a company from different perspectives: tactical, year-on-year and strategic (medium- to long-term perspective). Good management and their stakeholders understand that. TheClubDeal have established strong processes for supporting such mechanics.

Do not hesitate to contact us to learn more on the subject.

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