Corporate Divestitures: A Mergers and Acquisitions Best Practices Guide »

Providing practical application of best practices employed in the divestiture process, Corporate Divestitures provides you with detailed guidance on how your corporation should handle a divestiture. It provides a structured approach that emphasizes disciplined execution and illustrative documents and application aids that can be adapted for use in real-world situations.

Preface     xi
Acknowledgments     xv
Introduction     1
Overview     2
Characteristics of Corporate Divestitures     3
Transaction Model     10
Staffing Model     15
Enabling Principles     23
How This Guide Can Help     27
Key Points     30
Divestiture Activity by Standard Industrial Classification: 2002 to 2006     32
Aggressive Divesters: 2005 and 2006     33
Strategic Assessment     34
Overview     35
Strategic Assessment Process Steps     36
Analyze Portfolio and Consider Alternatives     37
Opt for Divestiture     41
Position the Organization for the Divestiture     46
Next Steps     52
Key Points     52
Divestiture Planning     54
Overview     55
Planning Phase Process Steps     60
Approval     62
Organization Plan     70
Retention Plan     74
Assembling the Divestiture Team     78
Development of the Divestiture Plan     86
Development of a Communication Plan     89
Key Points     95
Illustrative Divestiture Timeline     96
Retention Planning Document     99
Weekly Action Item Control     102
Communication Plan Outline     104
Issues and Resolution Control     106
Preparing for the Transaction     108
Introduction     109
Preparation Phase Process Steps     110
Engagement of External Resources     111
Validation of the Transaction Structure     120
Development of Selling Materials     122
Identification of Potential Buyers     131
Preparation of a Data Room     134
Overview of the Phased Disclosure Process     136
Key Points     139
Illustrative Data Room Information Listing     140
Disentanglement     143
Disentanglement: Preparing the Business to Be Separated     144
Disentanglement Process Steps     146
Gathering Information     149
Determining the Required End State     158
Developing the Disentanglement Plan     166
Quantifying the Disentanglement Costs     170
Executing the Disentanglement Plan     177
Key Points     180
Managing the Selling Process      182
Selling Process: Show Time     183
Selling Process Steps     185
Announcing the Intention to Sell     188
Marketing the Business     200
Due Diligence     210
Bidding and Negotiations     217
Key Points     220
Structuring the Transaction     222
Structuring the Divestiture Transaction     223
Structuring Process Steps     225
Bringing in the Required Expertise     227
Analyzing Alternative Transaction Structures     231
Drafting the Agreements     242
Negotiating the Agreements     257
Complying with Regulations     266
Key Points     270
Closing     272
Closing, Transitioning, and Learning     272
Closing Process Steps     273
Closing the Transaction     274
Managing the Postclosing Transition     277
Conducting a Postdeal Process Assessment     280
Final Thoughts     282
Key Points     290
Index     293