Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit Systems (DEFCS 2020)

Disposal of a Production Project in Russia

Authors
Petr Chumakov
Corresponding Author
Petr Chumakov
Available Online 17 December 2020.
DOI
10.2991/aebmr.k.201215.045How to use a DOI?
Keywords
business, business project, conclusion of transactions, direct investment, investors, entrepreneur, market economy, strategies
Abstract

Starting and running a business in Russia is significantly different from the same process Europe or the United States: it is much more difficult to dispose of a business than to start it, especially for unquoted companies. The inconvenience of liquidating direct investments is a serious barrier for foreign investors who are interested in the production sector of the Russian economy. In this article I would like to highlight the main challenges for the company’s owners while disposing of a project and to share my practical experience of solving them in a production company in Russia. Firstly, I consider spotting the optimal time for such disposal depending on the company’s strategy. Secondly, I show how to develop the plan for complete or partial exit from the project and to find a buyer. Then, I analyze the methods of calculating the fair price of a business project in Russia and the ways of convincing the buyer. I also describe the local specifics of the due diligence of the project for sale and the methods of maintaining confidentiality when preparing the transaction. Finally, I consider various ways of finalizing the deal from the legal and tax points of view. This article gives an entrepreneur the instruments to develop the exit strategy from a project in order to secure his direct investments in Russia.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit Systems (DEFCS 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
17 December 2020
ISBN
10.2991/aebmr.k.201215.045
ISSN
2352-5428
DOI
10.2991/aebmr.k.201215.045How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Petr Chumakov
PY  - 2020
DA  - 2020/12/17
TI  - Disposal of a Production Project in Russia
BT  - Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit Systems (DEFCS 2020)
PB  - Atlantis Press
SP  - 215
EP  - 220
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201215.045
DO  - 10.2991/aebmr.k.201215.045
ID  - Chumakov2020
ER  -