Divestitures

Konsortium Capital provides seller advisory services to public companies, privately held family businesses and private equity firms. These advisory services cover spin-off or divestiture transactions of companies or divisions, which may no longer fit the company’s strategic plan, or may have extensive capital needs which are inconsistent with the parent company’s broader goals, or disposition may be necessary to raise vital funds for the survival of the main business. In such assignments, Konsortium Capital brings to bear its extensive experience in preparing and positioning for sale small to medium sized companies, and understands what such business segments require in order to appeal to an industry-specific strategic buyer or to a private equity fund or other financial buyer. Often the parent/seller fails to realize that such transactions can require extensive preparation and positioning of the soon-to-be divested division or subsidiary. Konsortium Capital can add invaluable assistance in this process by allowing the parent to focus on its operations, while Konsortium Capital runs the divestiture process.

We bring to each phase of the sale process- valuation, preparation of the confidential memorandum, positioning of the business to the marketplace, preparation of key personnel, coordination of the due diligence process, strategy, identification of and careful management of contacts with potential bidders, management of the bidding process itself, selection, if necessary, of critical legal and other professional advisors, and successful structuring, negotiation and closing of the transaction-the same meticulous attention to detail which characterizes our highly successful M&A practice.

Not every divestiture transaction is suited to a broad-based auction process, and we do not hesitate to recommend a targeted, structured, narrower approach if the nature of the business and the logical interested buyers will best be found in that way.

When a transaction is motivated by liquidity needs of the parent to be funded by a closing special dividend, or to be facilitated by putting in place a pre-arranged stapled financing package, we assist in securing related financing. We approach such assignments with an awareness of the conflicts of interest inherent in financing provided by a sell-side advisor, and work with our client to avoid them. Our broad range of institutional lender relationships assures that, when necessary, such financing is treated as integral to, and sourced concurrently with, the sale process itself.