Transactions > Divestitures

Take the money and run

We have a simple guideline for our clients: Your enterprise should always be for sale. You should always have a value in mind so that if an offer falls from the sky you know whether to take it or pass. This isn't always about selling - how can you make informed judgments about your enterprise' value if you don't actually understand the current value of the enterprise?

Divestiture has the prerequisite of valuation, but kicks off with either an offer to buy, or your own decision to make an offer to sell. From that moment on, there are a million terms ad conditions to work out, the simplest of which is price. Do your employees go or stay? Do you need to incent them to stay through the transition? Are you willing to guarantee performance to the buyers? What are you actually selling, the company, or the assets thereof? How long should you be prohibited from competing? Can you work for a competitor if you choose?

Now for the fun part: Why will a buyer buy? What value will they receive beyond your present earnings? How much of that value should you be entitled to, if any? What is the price range that includes your minimum point, and the practical maximum that an informed buyer should be willing to pay? What financial terms make sense for you and for the buyer? What are the tax consequences, and how can you maximize your value through the transaction?

If you are divesting part of the enterprise, not all, then there is a reverse integration problem, and a forward integration challenge. How should you plan for both? What can you do prior to the transaction to mitigate the complexities and risk?

Key Benefits

    Value based - we assess the value from both the perspective of buyer and seller and help you optimize returns.

    Experienced - We take a unique approach to divestiture - learned from decades managing outsourcing transactions.

    Connected - our transaction group is constantly in touch with buyers and sellers, as well as financiers. We can get the deals done.

    Comprehensive - we take a holistic view of transactions. We help you to consider value from the perspective of your employees, your community, your personal finances, and your buyers. When you make your choices, it will be from the "all things considered" perspective.

    Aligned - Our fees are aligned to your desired results. Our compensation structure matches yours, so we taret the same goals.