PeriGrow works alongside businesses to manage their portfolios and decide where to grow and where to shed. Sometimes, by divesting non-core assets, management can better focus its attention on its core business. Our approach to divestiture typically includes three phases:
First the corporate strategy, which includes articulate growth aspirations, decide where to invest and where to divest, assess whether you can separate the business to be divested, and draw up a separation plan and evaluate divestiture options (outright sale, spin-off, equity carve-out).
Divestiture preparation is second, which helps build the exit story (a compelling rationale for buyers), create the road map to full potential (how the business will realize its full value), and design the separation in detail, set financial targets and harvest low-hanging fruits.
The final phase is divestiture execution, dealing with valuation of the business to be divested and set the walk-away price; screen buyers based on the business’s value to them and conduct reverse due diligence and devise a buyer approach.