Deals: Divestitures

Successfully planning and executing a business divestiture is far more challenging than most executives expect. When divesting a business, time is often short, unexpected stress and consequences arise, and value is easily leaked. These days, buyer due diligence is more rigorous, financing terms are more stringent, and there are more regulatory requirements. These factors along with limited verifiable carve-out financial information can impact the price ultimately achieved from a divestiture. Lack of preparation can dilute negotiating power and the overall value of the deal. It can also prolong negotiations — and the longer it takes to close a deal, the longer the potential drain on regular business.

Divestitures as a percentage of the US M&A market

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Common pitfalls experienced by sellers can be avoided if deal executives plan and prepare adequately for their divestitures. At PwC, we understand divestiture transactions and help our clients proactively address the complex issues that arise in divestitures. Create the best strategy for your next divestiture: learn how to support your asking price with the most compelling financial data, realize your objectives and begin to re-focus on your other business lines.

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Click here to learn How one company successfully divested several non-core operations to meet demands