Divesting a business

Carving out a stronger portfolio

Selling well

Over the past 10 years we have seen a steady stream of high profile divestments – as companies have demerged, spun off or sold non-core assets in response to changing market conditions.

Divestments are complex and high risk, requiring you to manage a diverse group of internal, and external, stakeholders, while maintaining your focus on the business left behind. Maximising the value you obtain for the asset, while controlling the costs associated with the transaction is a significant undertaking, which requires thoughtful planning and execution.

The 5 key stages to a successful divestment

Strategic review

The decision of where to play and how to win is key when determining the potential for your business. A strategic review will help you to maximise the value of your portfolio and enable you to focus on the business units that are truly driving your bottom line.

Readiness assessment

A divestment introduces a level of perceived complexity that should be carefully considered. Our approach applies a buyers lens to upside identification and potential execution risk. We will work alongside you to define a process with optionality and make an assessment of your divestment preparedness.

Preparing for exit

There are several key questions that you have to ask in preparing to exit, such as: how do I model the business as stand alone and prepare the financials to reflect the perimeter? What transitional agreements do I need? What contracts, legal entities and IP would be affected? What will it cost and who will bear that cost?

Transaction execution

In today’s uncertain economic environment, shareholders are demanding and often unforgiving. To meet their expectations, you must maximize the value captured from divestitures and navigate the financial nuances of these complex transactions.

Post deal

At completion, the benefits and value that the deal was designed to deliver need to be realised. With this in mind, some key questions to consider are: How will the business mitigate stranded costs? How do I begin to exit TSAs and transition to a standalone model?

Insights

Contact us

Richard Veysey
Partner, Accounting Advisory
Tel: +44 (0)20 7212 1060
Email

Richard Jones
Director, Accounting Advisory
Tel: +44 (0) 20 7804 3295
Email

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