Separations and Divestments
Strategic divestments can help refocus your business and make way for new growth
At Deloitte, our multi-disciplinary M&A teams consider the financial, strategic, tax and operational angles, while providing support across your full divestment and separation journey.
From identifying exit opportunities, to transaction, carve out planning and execution, to mapping out a path that helps your remaining organisation thrive.
What makes a good separation and divestment?
Separations and divestments can be complex. They require a sharp eye for detail and expertise to maximise the value creation opportunity for your organisation. But what does a good separation and divestment look like? They:
1. Are based on a strategic decision.
We use a deliberate approach to identify divestment opportunities as part of a strategic portfolio review and allow for early planning and a well-managed exit to maximise the value for your organisation. We bring our multi-industry insight to help you look at your portfolio in different ways and identify unique opportunities.
2. Have a considered divestment approach.
We ensure that all exit options (including IPO, demergers, and joint ventures) are considered. Our Deloitte teams identify and plan for deal-breaker obstacles, identify potential buyers and explore how the asset’s attractiveness can be enhanced.
3. Maximise and protect exit value.
We take a broad approach to enhance the value of your divestment. We enhance its profitability and growth ambition, drive market-applied valuation multiples, and address critical net debt items. We ensure watertight execution including transaction documents such as SPAs.
4. Tell a clear, compelling, and defensible value story.
Our Deloitte Divestitures team set out a clear and robust value story for your asset. This outlines the possibility for synergy creation with corporate buyers, and demonstrates potential standalone value for private equity, sovereign wealth funds and other financial sponsors. We help you demonstrate that sources of value are real, while providing financial and operational support that allows management to best present the business.
5. Follow a comprehensive separation plan.
Our detailed separation planning support is designed to ensure an issue-free Day 1 and critical activities and support for business functions. We establish a robust set of Transitional Service Agreements (TSAs). We help you design and establish a comprehensive separation programme and governance structure. This includes an operational handbook to identify current arrangements, a proposed Day 1 solution, and a fully standalone model, and related separation cost impact.
6. Maintain a focus on value creation and protection for the remaining business.
We identify and avoid stranded costs while helping to carve out a clear path for your remaining business, that assures your investors while engaging and inspiring your people.
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