The firm provides divestiture financial advisory services to public and privately held companies and financial sponsors. Our financial advisory services cover divestitures of companies, divisions or assets of all sizes of companies, which may no longer fit the company’s strategic plan. Other reasons for a divestiture maybe the company/ division’s capital needs are inconsistent with the parent company’s broader goals, or a disposition may be necessary to raise funds for the survival of the company’s main business. In such assignments, the firm brings to bear its extensive experience in preparing and positioning for sale of the company/ division. This process can differ greatly from a typical sell-side transaction. Often the parent/seller fails to realize that such transactions can require extensive preparation and proper positioning of the soon-to-be divested division or subsidiary company. The firm can add invaluable value in this process by allowing the parent to focus on its operations, while the firm runs a customized divestiture process.
We bring to each phase of the divestiture process- valuation, preparation of the confidential information memorandum (“CIM”), positioning of the business to the marketplace, preparation of key personnel, coordination of the due diligence process, strategy, identification of and careful management of contacts with potential bidders to this process.
Not every divestiture transaction is suited to a broad-based auction process, and we do not hesitate to recommend a targeted, structured, narrower approach if the nature of the business and the logical interested buyers will best be found in that way.
When a transaction is motivated by liquidity needs of the parent to be funded by a closing special dividend, or to be facilitated by putting in place a pre-arranged stapled financing package, we can assist in securing this financing. We approach such assignments with an awareness of the conflicts of interest inherent in financing provided by a sell-side advisor, and work with our client to avoid them. Our broad range of institutional lender relationships assures that, when necessary, such financing is treated as integral to, and sourced concurrently with, the divestiture process itself.