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Maximise your return on divestment
Value erosion can and does occur at various stages of a transaction. So how do you achieve the optimum value from a deal? Our Exit Readiness assessment helps identify issues early on, so they can be rectified before they impact deal value, helping you to realise the maximum return on your divestment.
The Challenge: Delivering on the Deal
In our recent Global Divesture Survey we identify the key challenges sellers now face in maximising value from corporate divestitures. Here is how Exit Readiness can help with the most pressing challenges.
- Less time to deliver the deal - Time between decision and deal execution is decreasing (half of respondents said that their deals closed in 7-12 months), giving less time to optimise a business and address value leakage areas. Exit Readiness is a structured process that can help you make the most of the short time period to address value leakage.
- Undervalued assets - 1/3 of recipients say the biggest hurdle to achieving a deal is obtaining acceptable value for their assets. Exit Readiness can help with this as it maximises deal value.
- Value leakage - 45% of respondents are reactive when evaluating divestment opportunities and therefore do not address value leakage areas early on – this is where Exit Readiness can help.
How Exit Readiness can help
Exit Readiness is a holistic analytical approach built around three critical dimensions of the exit process. We use this to help you to:
- Realise… potential pitfalls in your divestment strategy before they can impact the level of value you can achieve
- Revive… your strategy with supportive qualitative analysis so you are in the best position possible to divest
- Thrive… by achieving the maximum value as a result of your divestment
As a seller, you need to be clear about divestment strategy - be clear about what, how and to whom you envisage divesting the asset to, e.g.:
- Shape the story
- Robust Financial performance
- Clear Market opportunity
- Defining buyer universe
- Right Management in place
As a seller, you want to ensure that all value enhancing considerations are included in your equity story, e.g.:
- Exit positioning
- Business Plan presentation
- Business Improvement / Performance Management
- Balance Sheet Management
- Capex planning
- Operations & fit
- Tax structuring
- Technology performance
- Robust Divestment progamme
As a seller, you need to be prepared for the transaction process and get the basics right, e.g.:
- Quality of information
- Clear Commercial and market positioning
- Mark performance
- Tackle technology & infrastructure risk
- Address Legal & Regulatory issues
- Tax implications
- Procedures, accounting & controls
- Strong Process
- Know deal breakers