Both listed and privately-owned companies are increasingly disposing of non-core operations on the back of current economic climate, the disruption to traditional business models, the intervention by activist investors and the emergence of specialist private equity investors. Or simply, because they need to generate cash to strengthen balance sheets, pay down debt, invest in core activities or to enhance shareholder value.
Our role as a financial advisor is to lead and manage the deal from planning to completion. This role includes best positioning and presenting the business for sale to maximise value, identifying potential purchasers, marketing the business, evaluating offers and negotiating and closing the deal. On cross border disposals, we work in close partnership with our local country M&A teams who know and understand the local market, buyers and regulations.
Our M&A team has an excellent track record of supporting clients to identify non-core operations, advise on the best approach to maximising value and then executing those transactions on the clients’ behalf (both standalone or in partnership with the clients’ in-house corporate development team). Successful non-core disposals have unlocked value and enabled our clients to:
- Redirect proceeds to drive growth and development of core operations or to invest in new products, services and technology.
- Pay down debt/return cash to shareholders.
Improve market ratings.
- Hedge against geopolitical shifts which may push operating costs higher through tariffs or trade disputes.
- Improve agility to defend against (or possibly even avoid) unwanted hostile approaches through the development of a more streamlined strategy and more compelling equity story.