Corporate divestitures involve the sale of noncore assets or divisions, and are different from liquidation of entire businesses.
Divestiture decisions are strategic in nature and are typically made for restructuring businesses for profitable future growth. When individual segments of businesses do not support the strategic objectives of an organisation, they can become prime candidates for divestment initiatives. These business units may vary from small or niche segments to bigger divisions or even subsidiaries. Organisations often prefer outright sale or divestment of business units over other options such as joint-ventures, spin-offs and carve-outs as these still require management time when the real purpose is to focus on the core business.
Challenges
Businesses that offer superior financial performance but are not a strategic fit may be seen as difficult to divest since management focus may be on short-term profits rather than long-term growth
Evaluating alternatives such as spin-offs and carve-outs before deciding on divestment
Acting on the decision to divest and getting the business ready for sale
Managing the sale process to secure the best-possible price Closing and transitioning the transaction
Presenting and positioning the business unit as a standalone business and identifying what needs to be done to achieve this.
Solutions
V4G provides the advisory service to identify the best-possible alternatives and assist management to decide between spin-offs, carve-outs or divestitures We offer a proven and established track record in helping businesses plan strategically and release funds for growing core operations or to retire debt.
We have an industry-wide network that helps us find the best possible match for your business unit/subsidiary We offer post-transaction advisory services to help integrate your businesses with the new owners thereby freeing you up to focus on your core business. Acting on the decision to divest and getting the business ready for sale
Benefits
We ensure that both tactical (short-term) and strategic (long-term) interests are considered and protected We offer individual solutions for all business needs under one roof
Professional and focused approach by V4G offers significant cost and time savings on transactions Strong benefits exist by us offering post transaction assistance. This leave you free to continue with your business whilst we assist the new owners.
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