1. TurnAround Management & Business Advisory Services (TAM/BAS) Programme Nestor Partners

2. 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

3. “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

4. TAM/BAS key facts BAS in a nutshell For enterprises with 10–250 employees. Purpose Teaches businesses to use external business services. Develops local consultancy sector. Method Local office: 3-4 local staff facilitate 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. Purpose Restructure and introduce new management culture. Method Industry-specific, senior managers from economically- developed countries advise SMEs over a period of 18-24 months. No local office.

5. Which companies does 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.

6. Countries of operation

7. The 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

8. The 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

9. 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

10. 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

11. TAMBASTAM/BAS Turnover€ 17.5 billion€ 15 billion€ 27 billion*** Workforce Helped 840,000480,0001.1 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.

12. 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

13. 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

14. 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: tam@ebrd.com Contact