Divestments

The sale or divestment of a company, division or business is usually an emotive and strategically significant event. The motivation for such a strategy is usually driven by operational underperformance or lack of fit with the current corporate strategy.

Any divestment process should begin with a strategic review to validate whether a disposal is the best option. The guiding principle should be enterprise value maximisation.

The objective of any sale transaction is to maximise the sale price by identifying and working with buyers who are most likely to pay a premium price.

Allen Capital provides practical transaction management through all aspects of the selling process, including:

• Assessing the business, its competitive environment and the formulation of the sale strategy;
• Selecting tax and industry specialists to ensure the most beneficial approach is adopted;
• Identifying and assessing potential buyers based on business fit and the strategic rationale for the acquisition;
• Valuing the business based on its likely performance under the ownership and management of the highest -valued strategic buyers;
• Recommending a pricing strategy and procedures for the sale;
• Preparing an information memorandum for prospective buyers;
• Creating competition among buyers to maximise the sale price;
• Managing the process for achieving shareholder, and where necessary, regulatory approval;
• Managing the due diligence process; and
• Structuring, negotiating and closing the transaction.

Please contact us if you require further information.

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