Corporate Strategy Development

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Growth Strategy

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Divestiture Strategy

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Capital Investment Strategy

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Market Strategy

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Divestiture Strategy

Successful companies not only invest, they divest too. When they think about how best to manage their portfolios, they think simultaneously about which businesses to grow and which to exit. Looking beyond the stigma, there are benefits associated with divesting businesses, including opportunities to refocus on core business and reshape message to stakeholders, as well as potential rising stock-price post divesture. Companies considering divestitures must carefully assess which business to shed and why, how best to divest, who could buy, and how to approach the right buyer.

SCIENTIA'S APPROACH TO DIVESTITURE STRATEGY

Experience has taught us that to maximize a business's exit value, divestiture programs must be carefully orchestrated and grounded in the company portfolio strategy. Our approach typically includes three phases:

• Corporate strategy assessment
• Divestiture preparation
• Divestiture execution

CORPORATE STRATEGY ASSESSMENT

• Articulate growth aspirations
• Decide where to invest and where to divest
• Assess whether you can separate the business to be divested, and draw up a separation plan
• Evaluate divestiture options (outright sale, spin-off, equity carve out)

DIVESTITURE PREPARATION

• Build the exit story (a compelling rationale for buyers)
• Create the road map to full potential (how the business will realize its full value)
• Design in detail the separation
• Set financial targets
• Harvest low-hanging fruit

DIVESTITURE EXECUTION

• Value business to be divested and set walkaway price
• Screen buyers based on the business's value to them
• Conduct reverse due diligence and devise a buyer approach

To learn more about Scientia’s Divestiture consulting capabilities, please contact us.