We help to identify the issues and evaluate the options available and agree and assist in implementing the chosen approach (eg sell, fix and sell, or wind-down). We also identify and help manage the risks inherent in the process.
The planned outcome will be an increase in shareholder value by selling, restructuring, closing or winding down the under-performing business or subsidiary. Our global capabilities, extensive experience, proven methodology and swift service working under pressure of time are our key differentiators.
Potential issues
- You have units or subsidiaries operating inconsistently with Group strategy or are looking to divest/sell-off some non-core operations
- You may be finding it difficult to agree a way forward. In such cases where delay usually results in a diminution of value we help to get clarity and objectivity
- You are experiencing competitor pressure and/or your margins are shrinking or your share price is falling
- You are concerned about a business that is absorbing too much capital or the funding of a closure programme appears excessive
- You are experiencing sudden changes in the market or loss of key staff
When an organisation becomes aware that a subsidiary business, a division factory, a branch or a brand is under-performing, PwC assists in achieving an optimal recovery of value.
How we can support you
- By maximising shareholder value
- By releasing capital to reinvest in the business
- Enabling management to re-deploy resources more productively elsewhere in the business
- Maintaining brand reputation/avoiding adverse publicity
- Tailoring a solution to suit your needs, almost anywhere in the world
- Applying our proven methodology avoids delays and obstacles typical of a divestment or disposal – reducing the cost for the business
More about PwC's optimised exit services
We aim to avoid the 'fire-sale' scenario. 'Fix and sell' is a preferred exit route where we combine our turnaround and disposal expertise to increase the value of realisation. We may even consider expanding the business by merger or acquisition if this can add to the eventual resale value. However, if the optimal solution is a vendor-financed sale then it is best to identify this option early.
Over a planned period, we would gradually run-down the business, completing existing orders, realising assets and maximising receivables.
In some cases, though painful, the optimal solution might be to close the business immediately.
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