- Evaluate growth challenges and opportunities facing portfolio businesses and then:
- Identify and quantify risks associated with business models and market entry strategies;
- Understand management’s growth aspirations and priorities; and
- Develop value proposition.
- Evaluate and identify exit alternatives (e.g., businesses, markets, products).
- Define divestiture parameters (e.g., entities, assets, systems, people, processes, interdependencies).
- Identify and resolve business separation and transition issues.
- Develop “Road Map” for divestiture.
- Prepare GAAP carve-out financial statements.
- Identify management and employees who will remain with divested business.
- Perform Vendor/Sell-Side Due Diligence (i.e., evaluate business from buyers prospective):
- Quality of Earnings analysis;
- Achievability of projections;
- Working capital analysis;
- Net assets and off-balance sheet items evaluation;
- Debt & debt-like item identification; and
- Customer relationships, industry dynamics, and related issues.
- Tax compliance and structuring.
- Identify potential buyer synergies and “deal killer” issues.
- Identify value enhancers and value issues in order to be prepared for valuation discussions with potential buyers.
|Selling Process or Raising Funds Preparation
- Develop roadmap of objectives, milestones, scenario planning, and leak strategy.
- Prepare selling documents:
- Data room compilation;
- Financial information for Confidential Information Memorandum; and
- Narrative, key messages, master Q&A, and communications toolkit.
- Prepare management for presentations.
- Identify and evaluate consequences of novating contracts.
- Define financial and tax structure.
- Develop Transitional Service Agreements (e.g., terms and service levels).
- Summarize key S&PA terms.
- Identify and evaluate regulatory, tax and compliance filings.