Resilient

Divestiture execution and strategy–where precision matters

05.15.2020 - By Lori Lorenzo, Deloitte Risk and Financial AdvisoryPlay

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The current crisis may serve as an opportune time for organizations to divest assets. A business carve-out can create significant value for the seller during challenging financial circumstances. But the process can be complex and time-consuming at a time when leaders need to make critical decisions in rapid timeframes. In this episode, three Deloitte leaders discuss how divestitures have been historically used during times of crisis and how leaders might approach them during the ongoing COVID-19 pandemic. They share insights on how leaders might go about identifying and evaluating the criteria for a successful “surgical” carve-out. They also discuss key factors that may drive increased value when a company is going through the sales process–and how the process itself may significantly affect the final price. Given the unique aspects of the COVID-19-related divestiture environment, they explore how organizations might manage the divestiture process virtually, balance speed with elegance to potentially minimize transaction risk, and increase resiliency in M&A; strategies moving forward.

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