Divestments or Divestitures are not an end in themselves, but rather a means to building companies that can grow and prosper over the long haul. Wise executives divest businesses in order to create new ones and expand existing ones.
In order to add value, companies need to prepare for a divestiture and develop a strategy for continually evaluating those parts of the business that would make good acquisition targets. Selling part of the business can add operating cash, narrow the focus, and provide direction to the remaining part of the business. Divestitures are complex procedures, and executives often underestimate the necessary steps required for a successful business change of such calibre.
The key question becomes, "Is it the right time to sell my business?" The answer is a complex one, but there are some fundamental steps that should be taken to make sure you maximize the value of your business if you do decide to sell it. Divestitures may be a great alternative to mergers and acquisitions for increasing capital, streamlining operations, and focusing an organization's efforts. By subtracting, both - the parent company and the divested entity can add value and improve performance.
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Our experts partner with clients on corporate planning, providing perspective not only on immediate value and impact, but on long-term implications. We work closely with management and other advisers to leverage and complement their knowledge and ensure maximum impact, and actively support implementation and skill building. We work with senior leadership team on portfolio strategy and major investment decisions; linking corporate strategy to capital markets performance; investor communications; ensuring that M&A and other transactions are consistent with overall strategy; and strategic due diligence reviews and integration planning.
