|

Case Study: Divestiture

SITUATION
  • A large industrial conglomerate wanted to divest one of its business, a water treatment technology it had acquired a few years earlier:

    • Business had been struggling under client ownership; likely unable to reach its full potential in our client’s environment

    • Client sought help in divesting, maximizing value but also speed (LOI within ~4 months), while maintaining access to the technology

SOLUTION
  • Establishing a baseline for potential expected value:

    • Rapid business and market assessment

    • Pipeline review and revisions to management’s forecast

    • DCF, asset-based and Comparable-based valuation estimates

    • Alignment with Leadership around base-case exit value estimate

  • Marketing the business and optimizing value:

    • Identification of potential untapped levers for the business

      • Validation with management of key, reasonable ones

    • Optimized forecast and valuation estimates (internal)

    • Development of teaser and CIM

    • Identification of key potential buyers, globally and outreach

  • Buyer selection & support to closing

    • Dataroom development

    • Development of Management presentation and coaching

    • Support to negotiation with prospective buyers

OUTCOMES
  • Transaction completed, within expected valuation range and timing

  • Negotiated continued client access to the technology

Want TO know MOre?

CONTACT US

Ichbiah and Company LLC © 2018. All Rights Reserved

United States: 1549 North Bell Ave, Chicago, IL, 60622 | Phone: +1-773-744-8675   /   France: 277 Rue du Fbg. Saint-Antoine, 75011, Paris | Phone: +33-6-61-86-32-54

Securities offered through Burch & Company, Inc., located at 4151 N. Mulberry Drive, Suite 235, Kansas City, MO, 64116, an unaffiliated entity and member FINRA/SIPC