Making divestitures count

In a slowing economy, poor results and stakeholder pressures drive more companies to divest non-core assets. At the same time, volatile stock markets and tighter lending restrictions lead to fewer buyers making more carefully considered decisions. In this environment, the seller is at a disadvantage and can easily lose deal value.

Early use of disciplined planning and a relentless focus on the critical drivers behind the sale process will improve the odds of a successful divestiture. Companies who divest in today's environment can optimize their sales price and prevent disruptions to their ongoing operations with the right preparation and advice.

A smarter approach to divestitures can anticipate and address the heightened buyer diligence and better manage the overall divestiture to successful completion. A successful blend of rigorous divestiture management, due diligence, and separation excellence can package the sale in such a way as to reflect the full value of the business in the offering price, thereby securing a full capture of value. Smart divestitures also leverage technical knowledge to address carve-out financial matters, standalone audit requirements, transition service agreements, and structural alternatives in advance of these issues being raised by potential buyers.