Maximize Value, Reduce Complexities & Streamline Your Divestiture
Growthink Capital provides divestiture advisory services for emerging and middle-market companies. For the last 20+ years, our experienced professionals have worked side-by-side with companies looking to grow financially by selling a core business unit or division, or by removing assets to focus resources on opportunities that are better poised for growth.
Our customized divestiture strategy and corporate finance methodology ensures that clients experience a focused and efficient process and achieve an optimal transactional outcome, while working to minimize business disruptions through what is often a long and complex
To ensure that the divestiture does not threaten or create litigation risk for the seller, as part of our divestiture advisory approach we provide a detailed separation plan across every aspect of the process, which is carefully monitored and adjusted as the execution unfolds.
Growthink Capital Representative Transactions
Assisted Irvine, CA based Super 73, one of the most recognizable electric vehicle brands in the world, in completing a $20 million growth capital raise with Volition Capital. This is the second completed growth financing for Super 73 that Growthink Capital has facilitated.
Assisted Softvision – an Atlanta, GA-based software engineering and design firm with clients including Estee Lauder, Groupon, Macy’s, Mozilla and Kaiser Permanente – in completing a financial sale to a Utah-based private investment group.
Assisted Ft. Worth, TX-based BrandFX – a global pioneer and industry leader in composite truck bodies – in completing a financial sale to a New York-based private investment group.
What We Can Do For You
Our divestiture advisors do the following:
- Interview company management to fully understand objectives
- Perform extensive due diligence on the contemplated divestiture, its products and services, target markets, and future growth opportunities
- Complete a valuation of the subsidiary, business unit, or division if/as it transitions to a stand-alone entity
- Develop a strategic selling memorandum that highlights the divestiture opportunity
- Prepare additional marketing materials for distribution to potential buyers.
- Deal Execution
- Research, analyze, and target potential buyers within the industry sector / identify synergies/accretive long-term value creation via the acquisition event
- Initiate contact with buyers, negotiate terms, and finalize a sale arrangement that maximizes seller value and the likelihood of unit success post-sale
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The Divestiture Process
There are multiple critical steps in the divestiture process, all of which our corporate finance team has experience in providing value-added transactional advice, including:
Determining if the divestiture is the right strategic move for your company
The first step in the divestiture advisory services process is determining if selling off a particular business unit or asset is the right strategic move for your company. Factors to consider include:
- The current and future market landscape
- Your company’s overall goals and objectives
- The financial impact of divesting
- The operational impact of divesting
Identifying potential buyers, marketing to, and negotiating with them
The next step is identifying potential buyers for the business unit or asset you’re looking to sell, marketing to, and negotiating with them.
This is where the transactional experience of the Growthink Capital team is perhaps of the greatest value.
Divestiture discussions, often with close competitors of the company, are naturally complex, idiosyncratic, risky, and time and energy consuming. An experienced intermediary can mitigate time expended, business risk, and disruption through this process, especially as to quickly (and elegantly!) discontinuing conversations with prospective buyers that in spite of “asking the right questions” as to the divestiture have a low probability of making a bonafide purchase offer and closing a deal.
Managing the process from start to finish
Per the above, divestitures can be complex and time-consuming. An experienced advisor can lead and facilitate the process from beginning to end, including:
- Determining maximum value
- Structuring the ideal transaction
- Negotiating with buyers
- Overseeing due diligence
- Completing the transaction
- Post-transaction support (including corporate finance and ongoing professional advice to help clients maximize business performance after the deal is done
Growthink Capital has a proven track record of successfully executing divestitures for our clients. If you are considering a divestiture, we encourage you to contact us to learn more / for a complimentary consultation as to your divestiture opportunities, risks, and most likely outcomes.