Content thumbnail Global Corporate Divestment Study

Key findings Lessons learned Why divest Don’t wait for a buyer — make a move before you’re forced to act Page 7 Use divestment proceeds for an acquisition Page 8 Prove divestment value 70% 84% to your investors of companies are using believe their divestment created long- Page 8 divestments to fund growth term value in the remaining business Less need for speed: big change over last year Portfolio review Page 9 Frequency: make reviews a habit, not an event Page 11 Data: good decisions don’t come from bad information Page 12 56% 49% Analytics: critical for performance measurement of companies’ portfolio review say access to meaningful data Page 12 processes have resulted in is the biggest portfolio review Communication: poor unsuccessful divestments challenge information-sharing hinders divestment success Execution Page 15 It’s still your business: don’t ignore it until it’s off your books Page 17 Operational separation: vital to value creation, but often neglected 75% 33% Page 18 more companies generate a sale more companies generate a sale Communicate synergies: price above expectations when they price above expectations with an take back the buyer’s upside focus on creating value pre-sale operational separation plan Page 19 Keep a buyer in it to win it: management quality and commitment 49% of companies are planning Page 20 Provide the right details: to divest within the next two years keep buyer’s needs in mind Page 20 3

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