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Managed exits

KPMG’s Managed Exits service assists shareholders and management to appraise their options and dispose of difficult assets.

An exit process is often considered to be the quickest route to addressing the burden of an underperforming division or subsidiary but many businesses remain reluctant to pursue a transaction as they expect to crystalise material value loss. The consequence of delaying or rejecting an exit transaction is that the value leakage continues through ongoing sub-optimal trading, unless either a robust and effective turnaround plan is implemented over the medium to long term, or a closure is made in the short term.

All of these strategies contain risk, but with special situations transaction support, our advisors can deliver the desired objective in the short term whilst also eliminating unnecessary value leakage. A special situations managed exit involves careful structuring of the transaction and project managing the M&A process over the period necessary to maximise transaction value from the underperforming asset, typically over 3 to 6 months. 

What we do

Where appropriate, coordinating with our colleagues in Corporate Finance we take a practical, data-backed approach that helps ensure value is maximised whilst minimising ongoing implications for remaining assets or business units.

Why KPMG?

  • We assist through the entire end-to-end process – reducing uncertainty, helping make selling messages consistent, and maximising value drivers.
  • We have an extensive track record of delivering value from difficult transactions, including loss-making businesses.
  • We have conducted Managed Exit engagements across a vast array of sectors and geographies.
Graphic showing the Managed exists assessment process

See also

The managed exit process is designed to support shareholders and management teams exit an underperforming part of a business structure, e.g. a division or subsidiary. If the business as a whole is underperforming and a sale or refinancing transaction is being considered, you may wish to look at our market leading Early Options M&A offering here. If there is no element of underperformance present within the business structure our colleagues in Corporate Finance may be best placed to support any exit transaction being considered (see here).

The Turnaround Team at KPMG is able to deliver successful recovery outcomes to both mid-market private enterprises and the most complex international groups thanks to decades of experience and our flexible approach

Massimiliano (“Max”) Messina, UK Head of Turnaround

Fix / Sell / Close

Businesses lose significant value when they fail to respond well to underperforming or non-core operations or subsidiaries. There is clear advantage in these disruptive and uncertain times from acting quickly to get to the heart of Fix, Sell or Close options to deliver effective solutions.

We help simplify complex situations by bringing:

  • A framework to assess complex drivers and dynamics including delivery, regulation, people, stakeholders, reputation and governance.
  • A multi-disciplinary team across KPMG, bringing a breadth of situational, sector and geographical expertise and experience.
  • Data analytics and other tools.

Where Fix or Sell options are not available, we help clients Close underperforming or non-strategic businesses, helping minimise cost and risk as well as avoiding common pitfalls.

Our approach

We start with a low cost diagnostic options assessment to identify and simplify the many complex considerations. To find out more click here.

fix sell close

Executive solutions / CRO network

Companies experiencing decline, financial stress or distress often see complexity developing rapidly yet will often lack the specialised situational competences and managerial capabilities to navigate them effectively.

The KPMG Restructuring team may be able to help you by taking on certain senior roles in your organisation in an interim capacity such as Chief Financial Officer, Chief Operating Officer or Chief Executive Officer. Alternatively, we may be able to augment your existing team with a Chief Restructuring Officer role, guiding your senior team through a turnaround.

We design and implement turnaround and restructuring plans from within your organisation, working alongside your company’s board of directors and helping you manage your key stakeholders.

In situations like this you gain longer term benefits as we transfer our knowledge, skills and experience to your management team. We also support the search for permanent candidates to smoothly manage the transition as we move back out of your business at the appropriate time.

If you’d prefer an independent option to one of the KPMG team, our Executive Solutions of more than 300 independent turnaround and finance professionals may be for you.

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