As the economy strengthens, divestitures are becoming more a matter of strategy than survival.

During the challenging economic conditions of the last few years, many divestitures were driven by the need to reinforce balance sheets, raise capital, and improve financial positions.

While the ups and downs of the economy and market conditions will likely still play a big role in 2013 decision-making, divesting is becoming an important tool for implementing corporate strategic goals and making a statement in the marketplace.

With this heightened strategy comes a wave of tactical considerations to contemplate as you consider the important question: to divest or not to divest? And if yes, how to divest and to whom?

Using divestitures to advance corporate strategy demands careful financial analysis to prepare a deal for market, a clear communication strategy for disseminating divestiture plans to stakeholder groups, and a recognition of the need to be sensitive to employee morale during the process.



Divestiture survey report 2013
Deloitte surveyed nearly 150 executives regularly involved in divestitures to assess the past experience of their companies, their outlook for the future, and the challenges they face. 

While some findings were consistent with the results of Deloitte's 2010 survey, we did notice the emergence of some new, noteworthy themes:

• Focus more on strategic, rather than financial, considerations
  Many companies are increasingly realizing that divestitures need to become part of their core strategy rather than simply a way to improve finances.
• Be a prepared seller
  Careful preparation, including approaching the sale from the buyer's perspective, is important to increasing transaction value and reducing time-to-close.
• Don't neglect people issues
  Keeping employees motivated and providing clear line-of-sight into the divestiture strategy is critical to retaining and mobilizing talent around executing the transaction.
• Consider cross-border deals
  U.S. companies have historically preferred selling to domestic buyers, but a global perspective can result in more bidders and higher value.
• Learn to manage TSAs/stranded costs
  Transaction Service Agreements (TSAs) are viewed as a necessary evil by many companies, but they can be used as a strategy to close deals.

Related infographic

We invite you to explore the findings in the report above, meet our authors below, and learn more about our divestiture experience and insights from the material on the right. Read more HERE.