Divestitures

In certain situations, the complete or partial sale of a business unit is the best course of action for a company. This can ensure that every asset aligns strategically while also delivering shareholder value.

To maximize the value creation from the divestment program involves strategically managing the process of selling off assets or business units. This includes identifying the most valuable assets for sale, ensuring they are presented effectively to potential buyers, and negotiating favorable terms. Additionally, it entails managing any potential risks or challenges that may arise during the divestment process to ensure a smooth and profitable transaction. By carefully planning and executing the divestment program, companies can unlock value and strengthen their overall financial position.

However, such projects are complex and require expert guidance. Our global team of specialists can execute your carve-out or divestment project and help your business achieve its long-term goals.

Our team of experts can support you in your plans to sell or acquire a business unit that is part of a broader organization, whether the business unit is a separate legal entity or needs to be "carved out" from a larger entity.

 We analyze and repackage financial information to make it relevant to the transaction perimeter of the carve-out.

Our team will support you with:

• Identifying assets and liabilities that need to be included in the transaction scope
• Defining the carve-out method, including the allocation of central costs, the accounting principles applied, and the normalization adjustments required for the business unit as a standalone entity
• Preparing pro forma financial information and supporting documentation in collaboration with your financial and operational teams
• Assessing standalone profitability by analyzing the impact of the carve-out on your future organization, focusing on the development of cost structure and revenue generation
• Identifying and approaching potentialbuyers of the standalone entity
• Defining the financial clauses in legal documentation, together with your legal advisors, through the preparation of support for the financial clauses in the shareholder agreement, transition service agreements, indemnity clauses, and other documentation related to the carve-out

Our transaction specialists help you navigate the often complex, resource-intensive, and challenging issues you will face during a carve-out or divestment process, always with a focus on maximizing value.

With our extensive experience in advising on carve-outs and divestments, we provide you with tailored guidance every step of the way, helping you implement an executable plan to ensure a smooth transition.

Our Team

Forvis Mazars has dedicated teams in 38 countries worldwide, which means we can support you with your project no matter where you need us.