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Divestiture Management &
Advice
A Divestiture Program can be a time-critical component
of a Restructuring Program. Divestitures represent an
extremely useful corporate finance tool used to methodically
exit in a timely fashion businesses deemed inconsistent
with corporate strategy. They allow companies to re-focus
their business portfolios rapidly. They also constitute
a quick source of cash, allowing the client to fund ongoing/expanding
operations or retire debt.
A key condition for the successful implementation of a
Divestiture Program is the clear delineation of its primary
goal from the onset. For example, is the program meant
to (i) maximize divestiture receipts or (ii) minimize
the time it takes to re-focus the business portfolio?
Are we harvesting (taking profits) or plowing a fallow
field under (re-positioning the corporation). |
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