Corporate Spin Off/Out

Need money to run or expand your business?

 

Public companies, privately-held family businesses and private equity owned entities execute spin-offs and divestiture transactions of divisions or subsidiaries to raise funds vital for strategic expansions. The parent may also wish to exit a division or line of business since it's inconsistent with the company's core business activities. Whatever may be the reason for spinning off a division/unit, Ventures4growth brings to bear its proven expertise in preparing small and medium sized enterprises to ensure they become attractive to an industry-specific strategic buyer or another financial buyer or a private equity fund.

 

Challenges

  • Finding the right buyer is often the most critical and challenging aspect for spin-outs given the complexities involved. Sometimes strategic buyers are required since operating assets used by the unit must be retained by the parent
  • Extensive preparations are required by the parent company to position the soon-to-be divested subsidiary or unit for takeover
  • Certain spin-offs may not be suitable for broad-based auction process and requires a targeted and structured approach

Solutions

  • V4G works alongside the management and endeavors to understand the critical issues involved and suggest solutions that ideally suit sellers
  • We assist in securing financing when a transaction is purely motivated by liquidity needs of the parent to be funded by a special closing dividend or a pre-arranged stapled funding package
  • Our relationship with a broad-range of institutional investors ensures that special financing is available when necessary, and is sourced concurrently with the sale process itself.

Benefits

 

  • V4G ensures that the management team of the parent is always part of the decision loop without getting bogged down by the deal complexities.
  • We run the process in a manner that streamlines the client's involvement, thus allowing them to concentrate on core businesses.
  • Completing a due-diligence on future business expectations and anticipated standalone earnings is a must before initiating a spin-out/off process, which we help sellers develop.

 

Sign up as a Corporate Spin Off/Out and learn more about potential investors that are best suited to your requirements.