Before executing a Divestiture, an enterprise must have a clear understanding of what is expected to be accomplished by executing this transaction. Divestitures are typically executed to either allow the company to focus on its core products or to raise capital through the sale of a product line or business so that the capital can be deployed elsewhere. Nevertheless, these transaction require the utmost degree of executive alignment and department coordination or a significant amount of damage can be done to the product line being sold or the overall company itself.
SPX has a highly regimented process and proprietary tools that enable the development of an adequate Divestiture strategy. From the beginning, we implement measures to retain as much value as possible while also securing executive alignment for the transaction. Alignment includes a detailed understanding of why we are considering this transaction. Once we have executive alignment and an adequate strategy in place, SPX also works with an assortment of investment banks to identify and reach out to potential buyers to gauge overall interest. If there is potential buyer interest, we work with the client to discuss potential divestiture scenarios and to determine if it makes sense to move forward with preparation.