Sellers need to be creative and thoughtful about planning for divestments. The divestment process needs to be tailored to the specific transaction and incorporate a set of leading practices to avoid surprises and deliver maximum value for sellers.
Although the first quarter of 2013 saw significant declines in M&A activity, the economy appears to be recovering and the U.S. stock markets have reached record highs. While the stock markets appear upbeat, other factors indicate that there is still plenty of economic uncertainty. Europe is dealing with a debt crisis and U.S. unemployment rates have remained stubbornly high. In this environment it is probable that divestiture activity may increase. Sellers should be aware of several factors as they consider the possibility of a divestiture.