The Divestiture Due Diligence process begins when the parent enterprise receives a Letter of Intent (LOI) from a potential buyer of a divestiture candidate. On many occasions, multiple LOIs can be received from multiple potential buyers of a divestiture candidate, which can lead to a complicated process. With multiple suitors, it is important to manage data requests effectively in order to maximize the parent’s ability to recognize the highest value on the transaction.
SPX has a team that manages the Divestiture Due Diligence process in the most optimal manner possible. By using proprietary tools and a data room, we ensure that the appropriate questions are answered efficiently and effectively. We act as a data steward on behalf of our clients by setting up and populating a data room as early as possible in the process so that we can efficiently manage exceptions to what we’ve placed in the data room. By allowing clients to outsource this aspect of the divestiture, executives from the parent entity and the divestiture candidate can continue to focus on their “day jobs” instead of spending an inordinate amount of time managing data requests.