Many corporate groups continue to hold investments in their portfolios that do not meet return requirements, may even show negative results, and do not contribute strategically to the further development of the group.
This is where an M&A advisor is needed who has the necessary imagination to identify which investor groups might be interested in such a group entity so that it can return to growth with new ideas.
We also have experience in examining which interfaces between the group and its subsidiaries require special attention.
Economically, we strive on behalf of our clients to develop a scenario for the selling group and its subsidiary/business unit and the affected workforce that is significantly more advantageous than the alternatives of continuing in the portfolio or closing down. – Enabling focus on core business, ending resource commitment
Take advantage of the opportunity for a non-binding consultation and find out how we can strengthen your company and ensure the best possible success.
Cash flow burden due to negative earnings contributions and financial assistance for investments
High support costs
No synergies with the other units of the corporation
Often suboptimal morale among employees of units that are not the focus of attention
Units that are no longer the focus of Group management can be quickly brought back onto the growth path with new ideas.
Corporations are often flexible in designing the transaction structure in order to implement a pragmatic separation quickly and usually have a realistic valuation estimate. If necessary, negative purchase prices can be agreed upon
Relieved of group contributions and group collective agreements, the break-even point of a spun-off medium-sized structure can often be lowered quickly.
The financial data of a group entity can generally be relied upon – limited due diligence effort. Liability for contractual fundamental guarantees such as taxes and environmental issues is generally provided.
A corporate spin-off is a strategic decision that not only creates new opportunities but also involves risks. With Deichmann Corporate Finance at your side, you benefit from experience, market knowledge, and a clear roadmap that guides you safely through complex processes.
Talk to us about your plans and find out how we can make your spin-off a success.
