Divestitures: Finding Buyers & Investors

How to get maximum value for you and your company

We help you to find qualified, motivated buyers and investors. Successful companies not only invest, they also divest. When they think about how best to manage their portfolios, they think simultaneously about which businesses to grow and which to exit. What are the benefits of divesting?

• Divesting non-core assets permits management to focus its attention on its core business without being distracted by “problem businesses”
• For privately-held and managed companies, timely and effective divestiture and succession planning is vital to the future health of the business.
• A divestiture can act as a catalyst for change, causing management to take action that it has long known it should take.

Most investment banks and business brokers use a remarkably similar process for all assignments. The process usually involves the writing of a generic offering memorandum which is distributed to a large number of potential acquirers. Basically, the process is an auction to the highest bidder. Although this is sometimes the right approach, potential acquirers quickly realize that the business is being "shopped". In some circumstances, this impression in the marketplace can seriously undermine the ability to negotiate a truly value-maximizing transaction, as well as harm the ongoing business.

In addition to obtaining the maximum financial value, what are your goals regarding the ongoing viability of the business and the consequences for your people? How important is it to you that your business continues to be successful after the sale? It doesn’t need to be an “either / or” choice. Ask us how you can increase your financial return while also ensuring the continued success of the business.

What INNOVAND can do:

INNOVAND uses a confidential, targeted approach, customized to meet individual client's objectives. This more focused approach can often achieve better results. INNOVAND leverages industry knowledge and our international networks to affect a successful, value-maximizing sale without "shopping the company". This approach involves:

• Understanding value drivers in the industry and identifying a select group of potential strategic or financial acquirers that represent the best fit for the client company
• Professionally communicating with these selected potential acquirers in a way that allows them to truly appreciate the attractiveness and value of the company
• Carefully orchestrating the process in a way that maximizes negotiating leverage

INNOVAND's business sale advisory services span initiation through transaction structuring and closing. Although each engagement is unique, a mix of the following activities typically characterizes a business sale assignment:

• Preparing and Valuing the Business
• Identifying, Screening and Contacting of Potential Acquirers
• Preparing Confidential Information
• Presenting to Key Potential Acquirers
• Negotiating Strategy & Transaction Structuring
• Evaluating Purchase Proposals
• Closing

Next steps

To learn more about our work in this area or discuss your situation, please contact us. Or to read about INNOVAND capabilities in other areas, click the appropriate service.