Cafa has extensive experience in divestiture processes. The decision to sell a business may be triggered by a number of factors such as:
- Shareholder retirement or succession planning;
- Difference of opinion among shareholders regarding the future of the business;
- Change in the competitive landscape of the industry;
- Response to approaches from strategic or financial buyers;
- Conclusion that the business or division is no longer a strategic holding.
Whatever your reasons, Cafa can help you confidentially assess your situation and develop an effective divesture strategy to monetize your investment.
A preliminary assessment for a divestiture process would include:
- Strategically assess your situation and examine various feasible alternatives;
- Appraise the value of the business;
- Assess potential deal structure implications;
- Propose a strategy to approach the market.
Once the decision to proceed is made, Cafa will help you execute and maximize value while minimizing the distraction and time required from management during the selling process.
A properly executed divestiture process would include the following services:
- Establish the value of your business and determine the chances of success;
- Manage expectations and help you understand the different transaction structures;
- Develop a sales strategy;
- Identify potential buyers;
- Prepare a Teaser, a Confidential Information Memorandum (“CIM”) and a Non-disclosure Agreement (“NDA”);
- Approach potential buyers and obtain executed NDAs;
- Provide the CIM, answer questions and elicit offers in the form of letters of intent;
- Evaluate the proposals received and choose the ones that best meet expectations;
- Organize the due diligence process with a view towards obtaining firm proposals;
- Help make the final selection;
- Act as an intermediary to negotiate terms and conditions and review legal documentation to confirm compliance with the “spirit” of the transaction;
- Close the transaction.
Selling a business can easily exhaust the vendor and his team. By effectively managing the process, Cafa can reduce the stress and ensure that right steps are taken to maximize the value of the business.