Occasionally, larger companies execute divestitures and spin-offs of orphan divisions or product lines that no longer fit in their portfolio or as part of their corporate strategy. Selling a subsidiary or division is a complex process for which most companies do not have the necessary, dedicated resources. In fact, given the complexities of corporate divestitures, finding the right buyer is often the most challenging and critical aspect of these transactions. In some cases, a strategic buyer is required because management will not transition with the business or because operating assets shared or used by this division must be retained by the parent. In other cases, a financial buyer is preferred due to management's desire to participate in a transaction and concerns about sharing information with competitors.
By working alongside the parent company and operating management team, Founders endeavors to understand these issues and is ideally suited to represent sellers who are looking to pursue the divestiture options that are available in the market. We run the process in a manner that streamlines the client’s involvement, ensuring the management team remains in the decision loop but is not bogged down or distracted by the process. By doing so, Founders allows our clients to concentrate on their core businesses and continue achieving positive results while our team drives the deal process and maximizes the value for the divested asset(s).