How to Plan an Effective M&A Divestiture Process
Hosted by Kison Patel
“There should be a clear expectation and guiding principles; What are we selling? How are we going to sell? And what is our seller commitment post-close?”
On this Episode
Al Ansari, a veteran divestiture and integration advisor currently assisting Cisco with the development of their divestiture methodology, discusses the strategies, decisions and planning behind successful divestitures.
Al explores when and why a company should divest, common divestiture challenges, the difference between divestitures and reverse acquisitions, and the importance and structure of a buyer compatibility matrix.
00:45 Why does a company divest?
01:35 How does a company decide to invest?
04:00 Benefits of Divestitures
04:15 Advice for Companies Considering to Divest Assets
05:35 When a Bank Comes into the Divestiture Process
06:25 Common Divestiture Challenges
08:40 Examples of Buyer Dependencies and Demands
09:40 Difference Between Acquisitions and Divestitures
12:30 Buyer Compatibility Matrix
15:35 Divestitures Buyer Types
18:10 Divestiture Types and Structures
23:25 The Most Common and Easiest Types of Transactions
26:50 Typical Divestiture Timeline
28:50 Pricing Agreements
29:55 Negotiating Transaction Service Agreements
32:45 Structuring a Divestiture Team
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