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Being a “Prepared Seller” and Identifying the “Right Buyer”

Joseph Joy
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Joseph Joy: Deloitte Consulting LLP

Chapter Chapter 3 in Divestitures and Spin-Offs, 2018, pp 21-29 from Springer

Abstract: Abstract Many organizations are wired to buy assets, not sell them, because most fail to develop an effective internal sell-side capability. An effective organization will focus on core businesses in order to maximize its return to shareholders, which means identifying underperforming business units for divestiture. An effective divestiture strategy requires establishing boundaries for unraveling businesses, selecting the optimal buyer after appropriate due diligence, and developing a plan to meet the challenges of a divestiture. Divestitures require significant time and effort; hence, being a prepared seller helps identify risks and issues along with feasible solutions and mitigation steps. Ability to identify the pitfalls beforehand and being prepared to handle challenges are a testimony to the fact that seller has done the required due diligence and thought through the strategy to execute the deal to completion. This readiness of seller becomes a great confidence booster for the buyer company to go forward with the deal, eventually leading to maximization of the deal value.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-1-4939-7662-1_3

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DOI: 10.1007/978-1-4939-7662-1_3

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