Divestitures: Creating Value Through Strategy, Structure, and Implementation

CHAPTER 9

Separating the Divested Business

INTRODUCTION

While much ink has been spilled over the years in writing about the implementation of mergers and acquisitions (M&A), divestiture implementation has largely been ignored, or at best, conceptualized as the opposite of M&A implementation. Needless to say, this is simply not the case, which underscores the need for a distinct framework. Divestiture implementation consists of the following three steps, which this chapter and the next two will consider in turn:

1.   The divesting company must separate the divested business from its remaining operations.

2.   The divesting company must reconfigure internal processes in its remaining businesses, especially corporate overhead expenditures and resource ...