Companies are facing unprecedented uncertainty and challenges in the market, driven by a combination of macroeconomic, strategic, and regulatory factors. These forces are prompting executives to more closely manage and evaluate their portfolios, including divesting non-core assets.

Considering a divestiture in the near future? Here’s what’s top of mind for today’s leaders:

  • Portfolio management: The most successful companies actively analyze their portfolio, which may result in divesting non-core or underperforming assets.
  • Macroeconomics and geopolitics: Rising interest rates, geopolitical tensions, tariff volatility, and changes in valuations are motivating companies to consider portfolio optimization. Divestitures are a key path to optimizing capital allocation strategies and focusing on core capabilities.
  • Regulatory and political pressures: Regulatory scrutiny around mergers and acquisitions (M&A) may require divestitures to ease antitrust concerns.

Finding and Executing the Right Exit Opportunity

Amid a robust market for companies considering divestitures, including tax-free spin-offs, split-offs, carve-outs, asset sales, joint ventures, and Reverse Morris Trust exits, there are an array of critical topics and decisions to take into account. Decisions today will set the future trajectory of the transaction roadmap and influence ultimate exit value.

Explore expert Divestiture & Carve-Out solutions that solve real-world problems

Maximize shareholder value, ensure a profitable path forward, and proactively manage complex accounting, risk, and systems implications for RemainCos and NewCos.

Divestment ROI begins here

Based on market analysis, client conversations, and decades of experience, CrossCountry Consulting’s team of Divestiture & Carve-Outs experts has compiled a series of core themes and discussion points that are integral to companies exploring divestitures as an exit strategy. Listed below, these subjects will be examined and expanded upon in forthcoming articles:

  1. Mastering the Spin: Understanding Your GTM Path: Explore strategies for effectively navigating a corporate spin-off. Understand recent market dynamics, benefits, and a roadmap for success.
  2. Mastering the Spin: Preparing Financial Statements: Understand the steps involved in preparing carve-out financial statements, pro-forma models, and filing with the SEC. Gain insights into audit requirements and how to ensure a smooth audit process for carve-out financials.
  3. Mastering the Spin: Preparing the Operating Model for Day 1: Discover the importance of a separation management office (SMO) in managing cross-functional communication and driving the divestiture process forward. Explore a proven approach to creating a robust operating model that supports the standalone business post-separation, including considerations for Transition Services Agreements (TSAs).
  4. Mastering the Carve-Out Sale: Create a comprehensive roadmap for successfully navigating the complexities of carve-out sales, with valuable insights and practical steps for a smooth and profitable transition. From strategic planning to valuation and financial analysis, learn how to ready your organization for Day 1 and beyond.
  5. Navigating Employee Entanglements in Divestitures and Demergers: Prepare for complex transitions that must factor in legal compliance, effective communication, talent retention plans, compensation structures, cultural integration, and strategic decisions on legal entities. Learn more about the crucial activities required for smooth transitions and operational excellence.
  6. A Seller’s Guide to Crafting Effective Transition Services Agreements: Ensure a smooth business transition with an effective TSA. Gain insight into the TSA process, best practices, how to minimize risks, and how to maintain business continuity throughout the transition process.

Maximize Exit Value

Aiming to leverage a divestment strategy that’s right for your organization and its corporate objectives?

CrossCountry Consulting provides a suite of accounting, risk, compliance, systems, and deal expertise that empowers RemainCos and SpinCos to confidently and profitably navigate a divestiture. To establish and execute a divestiture roadmap at your organization and to stay current on the latest valuation-enhancing strategies, contact CrossCountry Consulting.

This information is for general knowledge and informational purposes only and does not constitute legal or professional advice.

Connect with an expert

Kati Penney

Transaction Advisory Solutions Lead

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Contributing authors

Nick Giunta

Kirk Lane