Our Clients are often faced with the issue of how to deal with non-core or under-performing businesses. Our Managed Exit team add value by developing the optimal strategy and ultimately implementing the exit for clients.
Managed Exit is part of our global Value Creation Services (VCS), which helps corporates identify, plan and implement performance improvement initiatives.
We provide a range of services helping clients to deal with non‑core or underperforming business operations, which are having a detrimental effect on group earnings, capital and/or management bandwidth.
Our focus is on understanding our client’s key drivers and helping deliver value, typically assessing the following options:
- Fix and retain;
- Sell; or
- Close down.
Key components of Managed Exit
- Fix and retain – Where
retentionis an option, we develop strategies in collaboration with our Value Creation Services (VCS) team, providing access to Turnaround experts who specialise in helping our clients to identify and implement profit improvement opportunities.
- Sell – Where the business is underperforming or non-core, a speedy outcome is often preferred and this is where our specialist Accelerated M&A team supports clients looking for a prompt disposal.
- Close Down – Where a sale is not possible or desirable, our Wind Down and Closure expertise enables us to assist in scoping, planning and implementing a closure. Where a corporate entity needs to be liquidated, after the operations are wound down our Corporate Simplification team can advise on the planning and implementation of liquidation.
Key triggers for Managed Exits
Typically large and complex groups with a division or subsidiary whose underperformance has hitherto been immaterial or masked by the profitability of the rest of the group:
- Market/investor demands;
- Regulatory changes;
- Sector pressures;
- Site consolidation or relocation; or
- Change in strategic direction.
Lost in translation: Global markets
We are excited to share a new piece of original research produced by Deloitte's Managed Exit team. We have analysed the financial performance of over 80,000