Exit Strategy

Creating an exit strategy for Ecomiles through mergers and acquisitions (M&A) requires a detailed analysis of business units and a personalized approach for potential buyers. Below, we present a robust strategy to sell Ecomilhas by specific business units, with a clear view of the pros and cons, challenges exemplified by market companies, and testimonials from M&A clients.

Exit Strategy Structure

For Ecomiles, a sales strategy by business units can add value by allowing each area (urban miles for bikes, subway, electric cars, ethanol, etc.) to be acquired separately. This better serves different profiles of investors and strategic buyers who focus on specific transportation modes.

1. Division of Business Units

Each business unit will be structured to optimize its own value and cater to different market segments:

• Urban Miles for Bikes: Focused on the audience that uses active transportation and meets the demand for zero-emission solutions.
• Urban Miles for Subway: Aimed at those who opt for public transportation, with a structure for direct integration with public transport operators.
• Urban Miles for Electric Cars: Segment aimed at companies and employees who use electric vehicles, taking advantage of tax incentives and a clientele with higher purchasing power.
• Urban Miles for Ethanol: Serves the public that uses ethanol-powered vehicles, offering an alternative with lower carbon emission impact.

2. Pros and Cons of Selling by Business Unit

3. M&A Benchmark Examples

• Tesla: Tesla managed to divide internal operations such as energy sales and vehicle batteries. They faced challenges in separating these units, as the synergy between them was essential to the brand's value proposition. However, this segmentation generated interest from different markets, increasing opportunities for capital raising in each area.
• Uber: In 2020, Uber sold its autonomous transportation operations to Aurora, focusing on the core business of urban mobility via apps. This decision allowed Uber to capitalize on an asset that was not part of its main strategy but still offered value to companies looking to strengthen themselves in autonomous transportation.
• Alphabet (Waymo): Google's autonomous vehicle arm, Waymo, was structured as an independent mobility unit. This attracted investors exclusively interested in autonomous driving technologies, allowing for a more transparent value assessment.

These benchmarks show that a segmented sale allows for greater alignment of interests between investors and innovation areas, while challenging the company to maintain cohesion in the value proposition.

4. M&A Challenges Cited in Customer and Partner Testimonials

• Stellantis: In its acquisition and merger process, Stellantis highlighted that one of the biggest challenges was the integration of distinct cultures and technologies. In a recent interview, the CEO mentioned the importance of a "merger of values and culture," indicating that, for Ecomilhas, each business unit needs to be not only financially attractive but also culturally adaptable to new environments.
• Volkswagen: Volkswagen's potential interest in acquiring Ecomiles' Urban mileage carbon credits program would likely be driven by their emphasis on transparency and efficiency in M&A processes. The automotive giant stresses the importance of clear documentation, synergy contracts, and operational cost analysis to avoid functional redundancies. This approach suggests that Volkswagen would carefully evaluate how Ecomiles' program could seamlessly integrate with their existing operations, particularly in relation to their growing electric vehicle strategy. The acquisition of Ecomiles could enhance Volkswagen's sustainability portfolio, aligning with the automotive industry's shift towards green technologies and carbon offset programs. The "Urban Miles for Electric Cars" unit might be especially attractive, complementing Volkswagen's EV investments and potentially providing additional incentives for electric vehicle adoption. However, any potential acquisition would need to consider cultural fit, as Volkswagen recognizes the crucial role of cultural integration in successful M&A processes.

5. Marketing Strategy to Attract Buyers

To sell each unit, it is essential that Ecomilhas invests in a specific marketing campaign that highlights the differentials of each business unit. Suggestions:

• Miles for Bike and Subway: Present studies on environmental impact and associated wellness benefits, aligning with health and wellness companies and public transport operators.
• Miles for Electric Cars: Emphasize carbon emission reduction and the potential use of carbon credits, attracting companies from the automotive sector and environmental investment funds.
• Miles for Ethanol: Show the use of alternative fuels as part of the transition to a low-carbon economy, highlighting its role as an intermediate solution.

Current Steps:

As the CEO of Ecomiles, I understand your interest in our M&A options. While I can't disclose specific details about our ongoing evaluations, I can confirm that we have been actively exploring M&A opportunities with our B2B customers in our existing base. This approach aligns with our current exit strategy, which includes:

• Segmented Due Diligence: We're conducting individualized financial and operational analyses for each of our business units.
• Investor Roadshow: We're organizing targeted presentations to showcase the unique value of each unit to specialized investors, including our B2B customers.
• Preparation for Transition: We're focusing on training our teams and preparing comprehensive documentation to ensure a smooth integration process post-sale.

These steps are crucial in our M&A evaluation process, especially when considering potential acquisitions by our B2B customers. We believe this approach will help us maximize the value of Ecomiles while ensuring that each business unit finds the most suitable buyer or partner.

The application of this strategy allows Ecomiles to expand its market value and achieve a successful exit, while reinforcing its commitment to sustainability in the transportation sector.

Back