When a piece of your company no longer fits: What boards should know

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Selling or spinning off a business can improve efficiencies and returns, but successful divestitures can be challenging.

 

Sometimes certain parts of a company no longer fit with the overall strategy. By separating, companies can focus on core capabilities and increase shareholder value. But what do directors need to consider before green-lighting a divestiture? Our paper explores the following questions: 

  • What is the goal of the divestiture? 
  • What kind of divestiture should be considered (carve-out IPO, spin-off, etc.)? 
  • Creating a separate company takes time. Is there a specific buyer in mind or will the business will be marketed to a range of possible buyers?
  • How will you handle talent?
  • What needs to be considered once the deal is done (e.g., stranded costs, transition service agreements)?

Contact us

Paula Loop

Leader, Governance Insights Center, PwC US

Catherine Bromilow

Partner, Governance Insights Center, PwC US

Michael Niland

US Divestitures Services Leader, PwC US

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