Divesting to maximize shareholder value in today’s challenging market
With the financial markets more challenging than ever before, careful preparation has become imperative for companies looking to divest. Over the last several years, the frenzied deal market often saw a reduced level of buyer due diligence as a result of the high competition for businesses. Now, in this much tougher deal market, with a smaller pool of likely buyers and increased demands from banks, the need for extensive buyer due diligence has increased and is expected to further lengthen deal close times.
More than perhaps ever before, the burden will be on the seller to prepare for what a buyer will need to know, or risk the deal falling through, not achieving their asking price, or a much extended deal timetable.This paper provides sellers with guidance on how to use a successful divestiture process to prepare a business for sale. Regardless of the reason for the need to divest, by using a strong divestiture process, sellers can successfully exit their businesses in as short a timeframe as possible, avoid erosion of the sale price at the negotiating table, and — ultimately — maximize their sale price.