Tag archives: divestitures

Speed matters: four tactical approaches to speeding up divestitures and maximizing value

With pressure to increase shareholder value from low productivity assets, many companies are exploring the idea of divestures. Yet, a recent article by McKinsey & Company suggests that only 29 percent of divestitures achieve win-win scenarios, whereby both the parent company and divested business achieve excess total returns to shareholders (TRS) following the separation. What … Continue reading

Trends in Canadian cross-border M&A

In recent years, cross-border M&A activity involving Canadian companies has soared, and 2016 gave rise to a record high in cross-border deal value. In Q3 2016 alone, Canadian companies were involved in cross-border transactions worth over CDN$77.7 billion, easily eclipsing the CND$21.7 billion in deal value from the previous quarter and representing 41% of all Canadian … Continue reading

Divestitures: minimizing transition costs and maximizing value

Divestitures present unique challenges that make it difficult for companies to realize full value potential. Even companies with established competency in M&A transactions can struggle to optimize value. A report from PwC’s Deals Divestiture practice identifies three primary sources of divestiture deal value. Transaction proceeds Transaction proceeds are generated from the sale of the divested … Continue reading

Asset divestitures: a transaction form that is gaining traction

A recent report put out by the Boston Consulting Group (BCG) indicates that companies are increasingly turning to asset divestures as a means of enhancing shareholder value. According to the report, divestitures have been steadily accounting for an increased share of total M&A activity in recent years, reaching a high of 48% of total global … Continue reading

Technology M&A in 2014: 10 issues to consider (Part II)

Earlier this month, we posted the first instalment in our two-part series summarizing Deloitte’s Technology M&A Report which outlines the top ten considerations for tech and other companies to keep in mind when using M&A to fuel development and growth. Our earlier post considered the top 5 issues identified by Deloitte, and this post will … Continue reading
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