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:
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:
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.