Optimising shareholder value is, of course, the ultimate goal underpinning all decisions a business makes about its future. Deciding what to do with an underperforming asset is no exception to this rule.
Successfully solving the problem of a non-core asset will stem the flow of cash supporting an ailing or non-core division and will liberate capital and resources to be redeployed more productively elsewhere.
But, whether the business or subsidiaries in question need to be sold, closed or restructured depends on a wide range of considerations.
How can customer relationships be protected?
Are there regulatory barriers to closing a business or subsidiary in a particular country?
What are the likely impacts on reputation and how can these best be managed?
How can an international business tap into the unfamiliar local market to find a buyer?
Are in-house management resources available to see the process through from start to finish?
For international businesses, other factors are likely to add complexity and difficulty to an already challenging process. These include:
- Working with foreign management.
- Untangling inter-company accounts.
- Managing local reputation.
- Human resources issues.
- Tax exposures created by a disposal or withdrawal.
A long list of business considerations needs to be taken into account when making and implementing a decision about the future of a non-core asset.
How can PricewaterhouseCoopers help?
PricewaterhouseCoopers has developed a comprehensive solution to assist with the process of assessing, planning and executing strategies to address non-core assets.
Optimised Exit Services offers a unique and proven methodology. Taking a multidisciplinary approach, Optimised Exit Services works through three key stages to ensure that analyses and processes are aligned to achieve the goal of optimal shareholder value, and the early release of funds for reinvestment.
Phase 1
- Identify non-core assets.
- Assess the available options.
- Assemble all relevant information.
- Provide independent valuations of the non-core businesses on both trading and asset bases.
Phase 2
- Agree the strategy.
- Identify resources needed, including time, capital (human and financial), and management.
- Assess and manage risks.
Phase 3
Implement sale, turnaround or wind-down.
We recognise that businesses have different needs at different times, so Optimised Exit Services does not seek to impose a solution. Rather, our professionals – with expertise in business turnaround, tax, real estate, valuation, human resources consulting and strategic planning – work with company management to make sure that assistance can be provided when and where it is required.
We can assist at any of the stages identified above, or we can work from the initiation through to the completion of an entire project. The service is designed to fit a business’s exact – and exacting – requirements.
Why PricewaterhouseCoopers?
A genuine global (and local) capability
We have assembled cross-border teams of professionals whose mix of skills, expertise and experience means that we can deliver services wherever in the world they are needed. With 860 offices in over 140 countries, we offer the best of both worlds: local service reinforced with global capability.
Getting the timing right
Lead times between identifying a problem and executing a plan need to be as short as possible. Optimised Exit Services can help a business to achieve that speed. Our proven methodology means we anticipate and therefore avoid many of the delays and obstacles typical of a divestment or disposal. We help our clients to save money, manage risk more effectively and get to where they want to be faster. In short, the sooner we are brought in to help with a project, the faster our clients see results.
