When an organisation becomes aware that a subsidiary business, a division factory,
a branch or a brand is under-performing, PwC assists in achieving an optimal
recovery of value.
We help to identify the issues and evaluate the options available and agree
and assist in implementing the chosen approach (eg sell, fix and sell, or wind-down).
We also identify and help manage the risks inherent in the process.
The planned outcome will be an increase in shareholder value by selling, restructuring,
closing or winding down the under-performing business or subsidiary. Our global
capabilities, extensive experience, proven methodology and swift service working
under pressure of time are our key differentiators.
Potential issues
- You have units or subsidiaries operating inconsistently with Group strategy
or are looking to divest/sell-off some non-core operations
- You may be finding it difficult to agree a way forward. In such cases where
delay usually results in a diminution of value we help to get clarity and
objectivity
- You are experiencing competitor pressure and/or your margins are shrinking
or your share price is falling
- You are concerned about a business that is absorbing too much capital or
the funding of a closure programme appears excessive
- You are experiencing sudden changes in the market or loss of key staff
How we can support you
- By maximising shareholder value
- By releasing capital to reinvest in the business
- Enabling management to re-deploy resources more productively elsewhere in
the business
- Maintaining brand reputation/avoiding adverse publicity
- Tailoring a solution to suit your needs, almost anywhere in the world
- Applying our proven methodology avoids delays and obstacles typical of a
divestment or disposal – reducing the cost for the business
More about PwC's optimised exit services
Sale:
We aim to avoid the 'fire-sale' scenario. 'Fix and sell' is a preferred exit
route where we combine our turnaround and disposal expertise to increase the
value of realisation. We may even consider expanding the business by merger
or acquisition if this can add to the eventual resale value. However, if the
optimal solution is a vendor-financed sale then it is best to identify this
option early.
Managed wind-down:
Over a planned period, we would gradually run-down the business, completing
existing orders, realising assets and maximising receivables.
Immediate closure:
In some cases, though painful, the optimal solution might be to close the business
immediately.
