Divestitures

The sale, spinoff or liquidation of a business subsidiary or division can be a complex process, involving a number of moving parts and an often compressed time frame. Much like a merger or acquisition, a divestiture can bring a number of parties and diverging agendas to the table, adding to the layers of the deal.

Common issues to address include:

• The complete vetting of the business unit to determine which assets to retain
• Addressing contracts that apply to the entity to be divested and splitting those away from the parent company
• Addressing the possible retention of key employees
• Determining which assets to license or jointly own and identifying issues relating to intellectual property
• Preparing financial data to support the asking price
• Addressing the various tax consequences  relating to the divestiture and the newly divested entity

From day one of the decision to divest, business owners would be well-served to establish a roadmap for the divestiture process, by first outlining in general, and as the process moves forward, in detail, each step in the transaction. We have assisted business clients in the divestiture of business units and subsidiaries and have the experience to guide you through the process.