Don't Just Get Rid of It: A Strategic Look at Creating Value Through Divestitures

Companies have invested heavily in their Corporate Development function, creating organizations of world-class acquirers. And in today's headline driven economy, multi-billion dollar acquisitions seem to grab much attention. But, as senior executives increasingly refine and focus their business portfolio, they are now challenged with the task of how to effectively divest. While the impulse may be to "just get rid of" a non-performing or non-core business, in fact, it may not be the best strategy. Instead, companies should be asking "what should we sell, and when?" as much as they look for deal execution best practices. Maximizing the selling price and minimizing the impact to the parent of a divestiture frequently requires more time and effort than acquisitions.

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