In a disposal or divestiture transaction, time is often short and critical. On the other hand, opportunities for value leakage are plentiful and it is easy to overlook issues that are priorities for buyers.
Our vendor assistance service utilizes the skills of our financial and tax due diligence professionals to help vendors maintain control and realize greater value. We work alongside company management and their lead advisers throughout the divestiture process to find and address weaknesses before buyers do, thus unlocking the value of the business to be sold and speeding the divestment process.
We help clients identify and resolve risks and exploit opportunities. We can:
- assist the client in gaining an understanding of the business and its financial history in cases where the client does not already have that knowledge (such as where the results of the business have previously only been reported as part of a much larger operational unit and "carve-out" figures are prepared;
- assist the client in assessing the quality of earnings and value drivers for incorporation into the Information Memorandum and management presentations;
- advise our client of issues likely to be raised by potential purchasers when they make due diligence enquiries
- assist in the preparation and coordination of data room, and advise on the Sale and Purchase Agreement.
If this is your situation
- Your company's strategy involves disposing of part of the business, whether through a carve-out of business units, or by the sale of existing entities.
- Your company is in the process of restructuring/re-focusing its activities.
- You want to reposition your portfolio to focus on your core businesses, or return value to shareholders.
- You have started to feel pressure from financiers as a result of deteriorating financial ratios.
PwC can help you
- By providing purchasers with greater certainty over the nature of the business and the characteristics of its cash flow. This helps pricing decisions and the level of gearing the structure will support
- By providing vendors with greater control over the sale process and the timing of sale, which can help secure a higher price for the business
- By helping you to reduce disruption to the business through better control over the sale process
- Our vendor assistance specialists can ensure that the vendor retains pace and initiative throughout the sale process
- By helping to identify critical value issues early, which gives you the option to "regroup and fix" outside the glare of publicity
- By providing rapid execution of the vendor’s divestment following the announcement. This reduces the business disruption and accelerates transfer to new owners
- By reducing uncertainty risks for buyers, potentially justifying higher offers
