The Secret to a Successful Divestiture |
When you are selling part of your company, don’t just
offer buyers a potential asset; give them the
capabilities to gain value from it. Business
strategy is always intertwined with capabilities. A
capability is the combination of processes, tools,
knowledge, skills, and organizational design needed to
deliver a specified outcome. Thus, although most M&A
departments spend much more time thinking about the sale
price, attention to capabilities can make a major
difference in a deal’s outcome.
For example, when you sell major assets, you can
often maximize the deal price by identifying buyers with
capabilities systems of their own that are a good fit.
Such buyers can make the best use of the capabilities
(including skills and technology) associated with the
assets being divested. They are often willing to pay big
premiums to complete the deal—and with good reason.
2013 |