What Do Divestitures Consultants Do?
A company may choose to divest by selling or liquidating a business segment or a major division in order to mend their financial image. It may also divest to rid itself of a losing department and allocate the proceeds to more profitable business lines. This calls for involvement of an expert to work out the modalities of obtaining the best value from the deal. Divestiture strategies involve huge sums of money, which, if handled poorly, may lead to fatal results. This justifies the hiring of a specialist.
The divestiture specialist comes with expert knowledge to give sound advice concerning value maximization from a divestiture. With their analysis and evaluation tools, they help a business to acquire a higher price from the divestiture. They help walk companies through the entire sell lifecycle from needs assessment, cultivation of risks and preparation to “execution of the transaction”.
Most In-Demand Services of Divestitures Consultants
Why Hire Divestitures Consultants?
Owing to challenges that range from unprofitable business lines, failure to grasp enough experience to run a segment, sometimes failing to integrate new activities into normal business, or purely for profit motives, companies may decide to divest. The decision to divest, if done out of impulse, may produce undesired results. A company needs expert reliable information regarding the business sales process. After identifying the need to hire a consultant, you need to have a specialist that will help you with the following:
Management of Strategy and Portfolio: the consultant reviews transaction processes, analyzes company assets, and gives an objective opinion that reduces risks. He analyzes clients’ portfolios, determining the intrinsic value.
Commercial due diligence: divestiture consultants also perform a thorough analysis, reports on the company overall atmosphere, and give an objective overview of the company internal and external landscape. The specialist therefore assesses, examines, and reports on company marketability, profitability, and competitiveness. By doing so, they give the investor an insight into the likely risks and growth potential.
Financial due diligence: the expert undertakes the responsibility of analyzing the underlying financial statements to determine their accuracy in as far as profitability is concerned. Analysis of financial historical data helps in objectively influencing the forecasting process. He also helps to report on financial position elements that are relevant to influence the sell/buy decision. He studies the financial statements to find out whether the picture given does not affect the sell/buy decision.
Human Resource Due Diligence: human beings are prone to resist change. The acquiring company needs to prepare for the human factor in the transition. The Divestiture specialist designs an execution plan of handling changes in human resource roles. He helps to design layoffs and retention of employees. He helps to plan for compensating the laid off employees, he also advises on the relevant key positions that need to be retained, or recruited to fill positions.
Regulatory due diligence: the consultant advises on the regulatory elements that may negatively affect the price. He is up-to-date with the current laws and regulations that may affect the economic climate that may fail the company to reach the expected goals. He assesses and reports on regulatory elements that could derail compliance and diminish the sale price.
Consultport simplifies the process of hiring a good team player with top-tier consulting expertise. Our carefully curated pool consists of Divestiture consultants among others. You can hire within as low as less than 48 hours.
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