Optimize Your Portfolio With Comprehensive Divestiture Advisory Services

Portfolio - Finance

There is a season when divestiture becomes your goal. Whether you are selling a complete company or carving out a division, you’re seeking divestiture advisory services that will assist in maximizing your portfolio in the process. At this point, it’s time to examine the offerings of divestiture advisory services to determine the quality of services offered and the full extent of services offered; after all, a divestiture is a critical process in the life of a company and those who’ve invested funds and, possibly, every ounce of energy, into it. 

A divestiture may include an entire company or the carve-out of a division; the companies that excel at divestiture take a systematic and proactive stance, carving out only as needed to reduce the impact to the business. When sellers require resources with which to pursue growth strategies in another area or to realize personal portfolio goals, the best process, conducted with divestiture advisory services, will offer minimal disruption, a positive process, and realized value in the end of the execution. 

The divestiture advisory services firm performs a number of significant tasks and, in the following list, we’ll examine those that will serve you, as the client, with the highest quality of each. The true goal of a successful divestiture should be to maximize your portfolio through thoughtful and deliberate planning; these services and tasks will also bring your portfolio to the highest level of optimization. 

The initial steps of a thoughtful and thorough divestiture must include analysis and selection. An initial valuation is completed, along with documentation of that value. In addition, a shortlist of target bidders should be prepared and reviewed by the client to pave the way for the bidding process and negotiations that follow. 

A very early step after the analysis and selection of target bidders is that of engagement with a business broker. The role of the broker is to act as an intermediary between buyers, the divestiture advisory group, and the seller(s). The broker facilitates the exchange of information and efficiently guides the process of divestiture to conclusion. 

Execution of the divestiture sale is accomplished as the divestiture advisory services firm executes the following key steps; tabulating responses from bidder interest, coordinating the due diligence process, performing a financial analysis of the bidder, facilitating communication between seller and bidder, and overseeing legalities involved in completing documentation required for the sale. 

A critical component of the divestiture sale is found in operational due diligence, which is overseen by the divestiture advisory services firm. The communication within any organization must be both effective and empathetic, as employee severance, management changes, and operations are often affected. Personnel need to be organized, educated and an efficient, streamlined approach should be offered to reduce disorganization and disruption.

The final integration of the divestiture includes any last-minute resolution of key issues, elimination of prior unknown elements, and coordination of alliances that will minimize risk and maximize value for the business. 

Divestments are sometimes fundamental in business strategies, with funds used to encourage growth in certain sectors or withdrawn to feed other interests or innovative processes. Optimizing your portfolio should remain as the first and primary priority of your divestiture advisory services firm from the beginning of the divestiture process to the end. 

As you consider the best repository for divestiture funds, you’ll want to consider funding a retirement account or funding a partner who will protect the legacy of the business you’ve grown from infancy. You may also want to support future generations within the family by partially funding, for example, a granddaughter’s dream of opening a wedding venue business. To protect your funds while encouraging her, you’ll present her with a wedding venue business plan to propel her business forward as you protect your funds. Whether you choose to fund a personal account or one that will drive new business growth in another arena, choose a divestiture advisory services firm that will carefully maximize your funding. 

Optimizing your portfolio via a divestiture is a serious undertaking and one that should be carefully considered from several viewpoints. Divestiture represents a permanent separation of funds from a complete company or a division within a company and, as such, there is no turning back without losing funds in the process. Consider the ramifications of divestiture choices with the divestiture advisory services firm and take advantage of the wealth of knowledge represented in the advisory firm, understanding that the wisdom found within the firm comes from years of divestiture experience.   

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.