Divestiture Planning and Execution
Due to ownership, management and liquidity issues as well as inner-generational equity transfers, The Food Partners’ (TFP) clients often face decisions regarding potential divestiture of divisions, assets or the entire business. TFP’s divestiture process is customized to best meet its clients’ objectives, which, in turn, are typically complemented by the following goals, namely to:
- Achieve maximum immediate cash price
- Obtain maximum value over time, which may involve participation in future growth and earnings
- Minimize transaction related taxes
- Minimize risk of prolonged disruption to the business and/or
- Protect positions of management, employees, customers and/or communities
TFP maximizes value in divestiture transactions by understanding the motivations of each potential buyer and communicating a consistent and compelling story, while maintaining alternatives to the buyers at hand. To minimize disruption to the business, TFP qualifies the interest of each potential buyer at every step and controls the flow of confidential information. In so doing, TFP provides an effective buffer to management and enhances confidentiality. Most of all, TFP maintains control of the process by treating each potential buyer impartially, moving them forward on parallel paths, providing full disclosure and coordinating the work of attorneys, auditors, accountants and tax specialists, as appropriate.
