Divestiture survey report 2013
Sharpening your strategy
Deloitte surveyed nearly 150 executives regularly involved in divestitures to assess the past experience of their companies, their outlook for the future, and the challenges they face. While some findings were consistent with the results of previous surveys, we did notice the emergence of new, noteworthy themes.
- Focus more on strategic, rather than financial, considerations.
- Many companies are increasingly realizing that divestitures need to become part of their core strategy rather than simply a way to improve finances.
- Be a prepared seller.
- Careful preparation, including approaching the sale from the buyer's perspective, is important to increasing transaction value and reducing time-to-close.
- Don’t neglect people issues.
- Keeping employees motivated and providing clear line-of-sight into the divestiture strategy is critical to retaining and mobilizing talent around executing the transaction.
- Consider cross-border deals.
- U.S. companies have historically preferred selling to domestic buyers, but a global perspective can result in more bidders and higher value.
Learn to manage TSAs/stranded costs.
- Transaction Service Agreements (TSAs) are viewed as a necessary evil by many companies, but they can be used as a strategy to close deals.