Divestiture Advisory

Companies of all sizes divest lines of business to strategically realign operations and take advantage of exit opportunities. Robust performance data and financial forecasts allow companies to analyze historical financials, business plans, forecasts, people, taxes, and separation costs, helping to identify the best opportunities. However, companies' existing recordkeeping and financial reporting may not provide the data required to enable this strategic decision making.

Preparing for diligence issues will minimize surprises and result in a higher valuation and expedited deal process. Experienced advisors can optimize the transaction process while enabling management to stay focused on day-to-day operations.

Why MorganFranklin?

MorganFranklin helps companies of all sizes successfully prepare for divestitures. With buy-side and sell-side due diligence experience, our professionals prepare sellers for questions that will arise during the diligence process. We identify potential weaknesses and examine the integrity of potential buyers.

Our team has significant experience designing forecasting and analysis tools that enable strategic decision making as well as addressing complex SEC reporting matters. We make management aware of reporting requirements related to transactions and prepare carve-out, pro forma financial statements, and other required documents and disclosures in accordance with SEC requirements. We cover the full life cycle of divestitures and our consultants understand that changes in timing and plans are common and require flexibility.


Capabilities

  • Divestiture strategy and planning
  • Forecasting function development
  • Carve-out financial statement preparation
  • Stranded costs identification and aggregation
  • System optimization and business requirements review
  • Buy-side and sell-side due diligence
  • Appropriate application of U.S. GAAP and IFRS
  • Process design and/or redesign
  • Project management support
  • Compliance with regulation S-X and S-K requirements

Impact & Value

  • Enable accurate strategic decision making
  • Maximize shareholder value by assisting with negotiations
  • Prevent staff burnout
  • Allow management to focus on running the business
  • Fill critical resource voids
  • Prevent costly transaction surprises
  • Meet tight transaction and reporting deadlines