It can take up to 18 to 24 months to transact a divestiture. Poor preparation and planning, followed by subjective rather than objective valuations, are the main contributors to this long time cycle, causing deals to unravel during negotiations.

• Auction Process - Most executives believe the "auction process" is the best way to get the highest value. And, this can produce valuable results. However, this process often leads to a lot of internal debate and disagreement, causing the transaction cycle to lengthen, and in some instances, causing a transaction to fall apart.

 

• Value Drivers - In our experience, a targeted process that matches the key value drivers of the division or product line being divested with the needs of a short list of buyers usually results in the fastest transaction and the highest value.

 

• Approach - We believe in telling the market what the seller expectations are, including price. This Pre-Determined Value (PDV) approach takes the guess work out of the process and minimizes valuation debates going forward. This alone can shorten transaction cycle time by three to four months.