MARKET INSIGHT: Using Divestitures to Deliver Excess Returns
This Market Insight report provides insight into how corporate divestitures create value, why they should be done more often and earlier than typically occurs, the complexities of extracting the assets being sold, and the benefits of engaging an expert to maximize returns and implement an efficient process. We hope you find this information valuable. If you’d like to discuss further, please reach out to Nick Triantafyllides or William Koch.
- Companies which employ a mix of both M&A and divestiture strategies tend to meaningfully outperform versus those who do only one or the other
- In a market downturn, strategic divestitures can serve as a favorable source of financing to support operations or purchase other assets
- Hiring an experienced advisor can help maximize value of the divested asset or business while minimizing obstruction of day-to-day operations