Corporate exit services
Corporate exit services is a service offering which utilises the reorganisation skills to assist clients in exiting from businesses, but does not necessarily involve insolvency procedures.
Objective
- Businesses looking to close underperforming and non-core activities
- Overseas parent companies looking for an orderly exit
- Businesses looking to transfer production or off-shore activities
- Post merger situations resulting in surplus operations
Situations applicable
- Where a division, subsidiary or whole business:
- is providing an inadequate return on capital
- has become non-core
- has been the subject of an unsuccessful turnaround
- is unprofitable
- requires new funding
- is insolvent.
- and formal insolvency would destroy value or is culturally unacceptable
Benefits
- Efficient and optimised planned exit which focuses on speed, costs, operational issues and personnel relations
- Regulatory compliance in areas such as Human Resource, Operations, Tax and Company Secretarial matters
- Clients can focus on running the most important and remaining parts of the business;
- Independent approach
The Deloitte Approach
- Consider and determine options – sale, turnaround, relocation, closure
- Assess exit options – risk, timing, cost, resources
- Plan the exit
- Provide a detailed plan covering team, timetable, financial forecasts, HR, operations, property, tax, communication and public relations
- Implement the plan
- Provide full project management of the agreed plan including leadership, internal and external negotiation and employee matters