Riveron Roundup: Divestitures
There are many reasons why a company may choose to divest part of its business, from selling a unit so it can focus on core operations to paying down debt to increasing shareholder returns. But the road to separation is often a difficult one, marked by complex accounting, regulatory, and legal issues. Still, if properly executed, a divestiture can be an effective way to create value. From IPOs of spin-offs to strategic sales, companies should consider the structure of the transaction in combination with their reasons for divesting and work to develop a robust divestiture strategy. The following Riveron resources serve as a guide for navigating the various challenges and complexities companies may face during the divestiture process.
1.
Don’t Let Divestitures Spin You Off Course
Paul Donnell, Jimmy Solis, Josh Bier
In today’s economic environment, corporate divestitures continue to be an effective way for public and private companies to unlock hidden value. Here are three ways that companies can prepare for a successful divestiture.
2.
Why Adopting the Right Diligence Strategy Can Accelerate Divestiture Success
Josh Bier, Dana Gavrila, Mark Cox
For companies looking to sell part of their business, it’s important to adopt a rigorous diligence approach in order to understand and resolve potential challenges that may lie below the surface of a promising deal.
3.
Creating Value Through Divestitures
Josh Bier, Chris Durbin, Jason Von Holstein
Divesting part of a business is a complex process. By understanding the various intricacies involved and proactively addressing them, companies can set themselves up to come out ahead following a separation or divestiture.
4.
Navigating the Challenges of Divesting a Business
Mark Cox, Bill Maloney
The separation process often requires more preparation and resources than sellers expect. Effective planning and strategic consideration around the structure of the deal and the required financial statements are crucial to success.
5.
IPOs, Acquisitions, or Divestitures: When to Rethink Segment Reporting
Sasha Morozova, Jenn Braden
Executing a divestiture can lead to changes in segment reporting. Here is what management should consider when addressing a divestiture and other organizational changes.
