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How to Deliver Maximum Value from Divestitures

Strategically Delivering Maximum Value During a Divestiture

An M&A Science Podcast

Hosted by Kison Patel

"Ensure that you think of divestitures as a value creating opportunity. Don't just think of it as a "do the deal, get rid of the asset," type approach or as an afterthought. So, think about it as a deliberate value-creating opportunity and put the appropriate governance around it. Get the team involved, get them interested, get them excited, get them part of the journey to say, here's a new future for you, for the people who are part of their business, let's be part of this. Help us make this business as attractive as possible."

On this Episode 

Kison speaks with Toby Tester, an M&A Consultant and Project Manager with over 20 years of experience driving strategic, financial and operational value through M&A. Currently a Senior Consultant with BDT, an M&A consultancy headquartered in London, Toby discusses how you can deliver maximum value from divestitures.

Kison and Toby talk about how divestitures, like acquisitions, can become a positive and transformational process. They also discuss the way that divestitures are currently viewed by the M&A industry.

This podcast also covers Toby’s article, The New Divestiture Playbook, in which he discusses the trend of how divestitures are strategically becoming more attractive, if not necessary.

"Take a step back. Let's not try to just get rid of the asset or just do the deal. Let's just take a step back and say, how can we go about attracting more or getting more value, or at least communicating more value to potential acquirers, and therefore going down a value creating path."


Show Notes

00:00 Introduction

01:15 Toby's Background

02:50 Toby's Article, The New Divestiture Playbook

04:20 How the M&A Industry Views Divestitures as a Strategy

06:00 Determining if a Business Unit is Non-Performing, or just Not a Strategic Fit

06:55 Creating a Strategy to Maximize the Value of the Asset

08:00 Discovering the "Buried Treasure" of a Divestitures

11:45 How to Create an Operating Model

13:15 The Steps of Sell-Side Diligence

15:00 Defining the Value

17:45 The Changing Landscape of Divestitures

20:50 Divestitures' Maturity over the Next Decade

23:35 When a Divestiture Goes Wrong

26.35 TSAs

30:25 Additional Divestiture Tips

31:40 Divestiture Story

33:45 Ending Comments/Credits


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