When a business divests itself of an underperforming subsidiary, optimised exit planning is crucial in order to recover maximum value. It may equally be the case that a division, branch, or brand is underachieving, causing depleted profit levels for the group as a whole.
A structured and well-planned approach to divestment, including tax planning and the management of inherent risks, optimises value for shareholders and streamlines the corporate structure.
Our specialist team can help management to deal with every stage of this intricate process.
A number of circumstances or events could lead to underperformance of a business, triggering the need for a well-constructed exit plan. These include:
Given the complex nature of corporate exit planning, professional input is vital to ensure that maximum value is extracted for the holding company and its shareholders. BTG Advisory offers a partner-led service that identifies all potential issues disruptive to this objective, and ultimately implements a well-planned strategy using sound commercial experience.
Once all issues have been identified we assess the possible options for exit, presenting the benefits and downsides of each. On agreeing the best approach, we assist the management team in executing the strategy.
A number of options for a planned exit may be available, including:
The merits and drawbacks of each will be identified through the process so that directors and other stakeholders have confidence in the chosen solution.
Our exit planning services incorporate end-to-end evaluation and mitigation of risk, as well as assessment of the operation and wider market to establish and address all potential issues. Input is provided during the planning stage, engaging stakeholders regarding the optimum route for exit and release of maximum value. This could translate to a sale of the underperforming business, restructure, closure or winding down. Closure of the underperforming business or subsidiary may typically occur via solvent liquidation, or a comparable process that minimises the tax implications for shareholders. BTG Advisory can provide more detailed information tailored to each business.