The Corporate Divestiture
Stripping away non-core assets could be the most profitable growth strategy available.
A business may be underperforming its peers simply because it may not be a good organizational fit with the larger corporate parent. Every business needs its “hotspot”, the place where it can grow and deliver the returns it is capable of without the interference of a questionable strategy that is more focused on near term margins.

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Our Expertise:
• Pursue new channels to market;
• Test a developing market or create a new market;
• Transform captive cost centers into value-added suppliers;
• Leverage network of corporate partners
and PE Firms;
• Generate financial gains;
• Re-acquire or re-invest later when risk is diminished;
 





For Corporations
Corporations have long pursued a consolidation approach to business growth and margin expansion.
In some cases, corporate growth has resembled the growth and movement of an amoeba, pursuing additional basis points of margin improvement without regard to their core strength and offerings. Over time, corporations find themselves with assets and business units that could be making marginal contributions to the overall earnings and value of the enterprise, but when taking into consideration management time and lack of strategic alignment, the business could very well be a net drain on the value of the corporation. Corporations lack processes to efficiently address non-core businesses and innovations. Divestiture Partners can assist corporations solve this non-core dilemma.


The Strategic Sweet Spot
We believe in order for companies to outpace the competition and reap the subsequent benefits, they must find their strategic sweet spot. The strategic sweet spot is that area where companies use their assets to uniquely serve customers with capabilities that can not be easily duplicated by others. Divesting is difficult for many corporations, but identifying and executing on the strategic sweet spot is critical to business success. Our expertise is in helping clients find and execute on their strategic sweet spot. Having assets in the business portfolio which are not aligned with the focus and direction of the corporation can be a distraction and net reduction to enterprise value.

 
©2012 Divestiture Partners