DIVESTMENT – A smart and strategic decision

Divestment operations can help in the strategy and create value for the

Companies, in times of crisis, are somehow preserving the future health of their businesses.

Divestment means keeping in a company's asset portfolio only what is truly necessary and sufficient for the continuity of its operations.

Recent research conducted by one of the “TOP FIVE” Consulting and Advisory firms in

Business management presents important results about the reality of companies.

national and international factors relate to the need for and appetite to divest, that is, to dispose of unused assets.

The vast majority of managers from large companies surveyed admit that their

Companies have held onto assets in their portfolios for too long that should have already been divested. This perception becomes even more evident during times of disruption, in crises, where capital allocation decisions are more limited.

Therefore, divesting in a planned and well-thought-out manner is a strategic task where the results must support and guarantee the core business, offering breathing room to help finance investments in new technologies, optimization of operational or commercial processes. In addition to being a solution for debt reduction, transforming fixed costs into variable costs, it also presents an opportunity to rethink the model of your operations.

Identifying the right timing for divesting is a skillful exercise and

knowledge of the business, as it can, under certain conditions, directly interfere with...

results of certain operations.

Divesting should be part of the company's strategic culture. Therefore, establishing a routine for periodically evaluating and reviewing the asset portfolio is a good management practice.

It is essential to define and prepare, at the time of divestment, the discourse on the...

opportunities that should support the sale of assets to be made available, as well as the conditions and basis for the proper pricing of the assets.

We offer a joint study with company executives to identify assets to be made available, potential marketing alternatives, and recommendations on the best way to offer these assets to the market in order to optimize sales.

Detailed planning and monitoring of progress in operations of

Divestments are part of our job.

Our experience in large projects across different operations and business segments, such as Food and Beverage; Metalworking; Textiles and Apparel, qualifies and accredits us in this area.

We look forward to hearing from you for a detailed conversation and to explain how we can help.

Marcelo Miraglia

Partner at DMS Partners