What are your thoughts on divesting? Tell us.
Divestitures are as important as acquisitions in defining business success. Research shows that those who divest outperform industry peers. So why then do some US companies decide against divesting?
You tell us. We’re focused on how US public and private companies approach corporate renewal, portfolio allocation, divestiture decision-making and execution and the implications for divestiture outcomes.
Questions the survey will address:
Inflation is rising. So are interest rates, supply chain costs and cost of capital. CFOs know a portfolio approach to their business is the key to long-term shareholder returns. In other words: capital discipline. Yet companies aren't divesting in line with previous M&A cycles. In fact, the acquisition to divestiture ratio is at a 20-year high.
The fact remains, active portfolio management — doing both acquisitions and divestitures — generates the highest excess returns over industry peers. Then why do some companies decide not to divest at all? What prevents companies from making timely divestiture decisions?
A divestiture is a journey that can create value for the seller. However, many factors influence whether or not a company decides to divest. The research will uncover which factors have the greatest impact on seller return.
The study spans three phases of the divestiture process — portfolio review, divestiture execution and reinvestment. It explores a wide range of internal and external influences across four broad categories: context and market, structure, process and psychology.
Research expertise
In designing and performing the study and extracting insights from the data, we collaborated with two experts:
Methodology
Often, research methods rely on either historical or survey data. We endeavored to go further. To test our hypotheses, we built a theoretical model and gathered data using a three-pronged approach. Sources of qualitative and quantitative data includes:
Your experience is important to the research. Take the survey today.
