Divesting for value
In periods of economic growth and downturn, many financial institutions take a systematic look at their business portfolios.
As they do so, divestiture is quickly rising to the top of the corporate finance agenda.
Solutions from StraitsBridge
At StraitsBridge, we assist clients ensure that their decision to divest is based on a clear strategic rationale and sound principles of value creation.
The experience of our consultants across divestitures has taught us that maximizing a business’s exit value requires a well designed divestiture program.
Our approach to divestiture typically includes three phases:
Articulate growth aspirations & decide where to divest
Draw up a separation plan for the intended divestiture
Evaluate divestiture options (outright sale, spin-off, equity carve-out, etc)
Build the exit story (a compelling rationale for buyers)
Create the road map to realise full value potential
Design the separation in detail
Set financial targets
Valuation of business to be divested and set a walk-away price
Screen potential buyers
Conduct reverse due diligence and devise a buyer approach
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Divestiture: Questions to consider
Which businesses should I think about exiting and why?
Which is the best divestiture path: trade sale, private-equity sale, management buyout, or initial public offering?
Who would be the best buyer to ensure maximum value realization?
How can I attract that buyer with a compelling equity story and defendable business plan?
How can I manage the divestiture process to shield the day-to-day-business from transaction turmoil?