It is generally acknowledged that when you want to grow your business, its quicker by acquisition. Most corporations with ambitious growth plans are programmed and geared to buy assets, not to sell them.
If you have a busy acquisition programme, however hard you try not all deals will turn out as hoped or will deliver the results as expected. This is the reality of business, if for any reason an acquisition has not worked out as hoped then you should consider your options, in some cases it may prove best to divest and sell that asset.
Like any major project or asset sale, a disciplined and patient approach to divestiture will not only sharpen your focus on the key benefits of the business disposal but also put the business in the best position to unlock any hidden values and increase the certainty of deal success.
Once you have identified a non-core or non-performing asset and decided to divest, avoid holding or other delays, even if profit making. Start with a robust de-integration plan and develop a compelling exit story to help engage potential acquirers.
Companies should only consider selling businesses that are not considered important to their core strategy and will likely have more value to other firms than their own.
5 key considerations
Engage an experienced team to manage the divestment.
Conduct a confidential market test / off market programme.
Plan for De-integration
Provide compelling plan for potential acquirers.
Management of expectations (shareholders / staff)
If your business is geared to acquire, why not talk to external exit and divestment experts. Advisors with a readymade database of corporate acquirers who can act quickly and in confidence. Avoid the distraction of your existing M&A team changing their focus away from your acquisition programme.
Divestable.com provide a confidential M&A service to companies thinking of selling non-core assets. Talk to us in confidence with no obligation.
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