Keywords
Citation
Seagroves, F. (2010), "Discipline matters in optimizing the sale of a business", Strategic Direction, Vol. 26 No. 9. https://doi.org/10.1108/sd.2010.05626iad.008
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited
Discipline matters in optimizing the sale of a business
Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 9
Seagroves F.Financial Executive (USA), April 2010, Vol. 26 No. 3, Start page: 24, No. of pages: 4
Outlines the management approaches required when selling a company in order to optimize shareholder value with divestiture, in a global market that is starting to recover from a major global financial crisis and recession, the pressing need for managers to take a disciplined and well-thought out approach, and the way in which success is rooted in diligent preparation, careful process management, and effective information management. Describes how to manage both the process and the information involved in the deal and sets out the main elements of a suitable plan that should encompass the following elements: aligning organizational objectives; developing an effective divestiture; assembling a team of trusted advisers and deal specialists; putting the company’s financial house in order; focusing on quality of earnings and performance, and clearly defining the message to tell a compelling story; developing credible financial projections; understanding subjective value; initiating the buyer identification and assessment process; evaluating potential structuring alternatives; revisiting specific transaction objectives and priorities; and creating and executing a specific sale timeline. Concludes that those sellers that exercise the discipline imposed by this framework will position themselves to keep control of the process, get the deal done with minimal disruption, avoid surprises or pitfalls, and optimize shareholder value by divesting the business at a premium price.Article type: ViewpointISSN: 0895-4186Reference: 39AL361
Keywords: Management techniques, Mergers and acquisitions, Organizations