Content thumbnail Global Corporate Divestment Study

Deal execution: fail to prepare, prepare to fail With boards under constant scrutiny to build shareholder value, sellers of corporate assets need to answer three critical questions: What drives the business’s purchase and valuation decisions? How can the seller develop a value story tailored to individual bidders in order to maximize value? What impact will the divestment have on the remaining business? Sellers who can answer these questions make an asset easy to buy and create competitive tension. The value story should clearly articulate the future value of the separated business, which often deviates from the current operating model under the current corporate umbrella. And yet, just over one-third (36%) of companies have developed consistent execution procedures across their divestments. Corporates continue to point to deal execution as a divestment area ripe for improvement. 16

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