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Managed Exit

Fix, sell or close? End-to-end solutions for underperforming and non-core businesses.

Evaluating options for an exit strategy

Even the most successful global companies may need to address and reconsider the future of underperforming and non-core assets.

Corporates are challenged to use their capital effectively, particularly if that capital is trapped in underperforming businesses. There are many external factors that can trigger a decision to exit, including:

  • A turndown in economic conditions, which may drive a need to cut costs
  • Sector-specific changes, often driven by technological advances and changing consumer preferences
  • The M&A environment, with the rise of activist investor pressure and disruptive M&A, is potentially driving boards to dispose and exit from non-core operations.

At Deloitte, we’ve developed comprehensive solutions to help businesses evaluate their options when contemplating an exit strategy. Our multidisciplinary Managed Exit service, led by our Financial Advisory teams, advises multinational corporations and organisations on fixing, selling, or closing underperforming and/or non-core areas of their business. We work alongside the business throughout the process, from developing an initial strategy through to detailed planning and hands-on implementation of the exit. The ultimate goal is to free up valuable capital and management time.

Deloitte is also able to help global clients eliminate entities once the operations have ceased, including removing dividend traps. By de-risking oversized corporate structures, the business is better able to achieve a state of both commercial and legal dormancy.

Lost in Translation report

Running a successful global business can present a broad range of challenges, which have only increased in recent years due to the macroeconomic volatility. This is especially challenging for organisations when there becomes a need to deal with non-core or loss-making operations overseas.

In our Lost in Translation report, we analyse loss-making foreign operations in relation to ultimate owner countries (the locality of the company’s registered headquarters) and loss-making subsidiary countries (where the locality subsidiaries are outside of the headquartered country). We also cross examine these figures by the top loss-making sectors per country.