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Sell-side readiness review

M&A services

Clearing the hurdles to deliver value on your diposal

In difficult and volatile markets, many businesses will inevitably look to review their strategic options. Whether your proposed actions include a sale via an auction, a public offering or obtaining the best price for a takeover, in all cases the desired outcome is the same - securing maximum return on disposal.

Businesses often underestimate the importance of planning a disposal, which, when combined with undue optimism around transaction readiness, can often result in value being left on the table. The underlying principle is simple: properly planned and executed disposals lead to enhanced shareholder value.

The challenge is, however, how to manage a complex disposal process while running a business in the current economic environment. Even in the best of times, the planning and implementation of a large and complex disposal will invariably place significant pressure on your organization's internal resources. Our experience also tells us that most businesses don't produce financial information in a form which is likely to fit the requirement of buyers, finance providers, advisers and other stakeholders. This can lead to a business missing or not recognizing early enough deal issues and information, which frequently prevents the successful completion of a deal or results in delay or lost value for shareholders.

At Deloitte, we can offer you that crucial third-party perspective:

  • Helping you to identify and challenge your rationale for disposal;
  • Viewing your business from the standpoint of a potential purchaser; and
  • Preparing for the disposal process so that the market at large and your purchasers see your business at its best.

The Deloitte readiness review

As you consider a disposal, it is essential to complete a readiness review. This will provide a framework to facilitate a robust and orderly process for disposal by identifying major issues, resource requirements and work-stream priorities. A Readiness Review comprises a detailed review by your senior team supported by Deloitte experts, to perform an initial diagnostic of the business, providing guidance on:

  • Articulation of shareholder objectives, the company and its market position, and the overall feasibility for disposal.
  • Extent of integration with other businesses in the portfolio and principal steps required for separation.
  • Key issues impacting disposal value and potential mitigating actions.
  • Key priorities, timetable, information and level of required resource.
  • Strategic view of the tax structuring required.

A readiness review can take as little as a day for relatively simple disposals.

Overview of the top priority questions in the framework of a readiness review.

View illustrative Readiness Review questions

Contact

Lieve Creten
Partner 
M&A Transaction Services
+32 2 600 62 13
maservices@deloitte.be

Catherine Pauwels
Director 
M&A Transaction Services
+32 2 600 62 13
maservices@deloitte.be