Creating stakeholder value
Divestments are set to play an increasingly large role in company strategies as they seek to realign their business models for growth. We believe at Deloitte, that divestments can create stakeholder value for both buyers and sellers, if done with clarity of purpose on both sides.
Corporations need to continuously manage their business portfolio against their strategy and capital needs for growth or survival. An advantaged portfolio is strategically sound, value-creating and resilient in face of changes in the market place.
We will harness our strategy and industry expertise to create the context for executive teams to explore many views, closely examine their choices, and emerge from the portfolio review process aligned and committed to action.
Formulating the divestment in explicit terms is essential for a successful transaction. We assist vendors in
- Definition of transaction scope from business and operations viewpoints
- Explicit statement of the carve-out financials, balance sheet and P/L statement
- Design of transaction structure and completion mechanism
- Operational separation design and project plans to execute carve-out
- Providing vendor due diligence to review the target for the Buyers.
Getting the right deal
Corporate carve-outs are attractive acquisition targets to both peer companies and private equity funds – as long as preparation and presentation caters to the needs of potential buyers. Our divestment teams manage the transaction process and provide hands-on support and strategic advisory in negotiations and creation of valuation models and investment proposals.
Our approach utilizes financial and operational M&A advisors targeting the right deal – one that will be completed, as carve-out challenges are carefully considered.
Divestments are strategic projects with immense amount of practical detail. We deliver divestments as structured programmes with active engagement with our clients’ staff.
Managing inherent complexity, confidentiality and time-critical nature with well-defined work areas, deliverables and controlled pace is essential for
- Realization of divestment case on time and on value
- Guaranteed financial and legal completion of the transaction
- Smooth operational carve-out ensuring business continuity on and over Day 1
- Resolution of business linkages with transitional and long term agreements
· Clear and comprehensive stakeholder communications and employee experience