Sell-side readiness review
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.
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
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