BCG’s services span the entire divestiture process.
BCG helps companies design and manage the carve-out process. This includes defining the commercial requirements for any service level agreements with the carved-out company and minimizing any stranded costs for the parent company.
We can help develop and validate the asset’s business plan so that it is bankable before it goes out to bidders. This process identifies operational value levers and pinpoints areas within the company that may need improvement prior to going to market.
Getting a seller-commissioned, yet independent third-party opinion on the business prospects is sometimes critical to accelerating the divestiture process. BCG offers an unbiased view on the attractiveness of an asset and highlights areas that buyers might use to reduce their bidding price.
Sellers need a convincing pitch that reflects the market environment, firm situation, and investor needs. BCG can assist in that process by preparing the equity story, information memorandums, management presentations, road shows, and other transaction documents.
A centralized command center helps coordinate the many different parties involved in a divestiture—banks, lawyers, the internal deal team, buy-side parties, and more. We can help support this office and work seamlessly with other external advisors to manage Q&As. We can also help prepare decision materials and bid comparisons for the seller’s C suite executives and company board members.
Negotiations between the buyer and seller can become intense, which is why it’s a good idea to develop a clear negotiation strategy. BCG can help prepare the negotiation team for this process by translating all due diligence insights into commercially relevant arguments and analyses.