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Divestitures

When divesting critical assets, companies seek to attract multiple potential buyers, maximize sale price and accelerate the time to closure. Yet, based on ERM’s experience, buyers walk away from an estimated 20 percent of deals due to perceived environmental, health, safety, sustainability (EHSS) and operational risks.

To prevent deals collapsing, sellers need to provide accurate and comprehensive EHSS data that can be analyzed for both risks and opportunities during the decision-making process. Without these insights, deals can be delayed and even compromised, or the assets targeted for divestiture reduced in value.

However, many of our clients find capturing, analyzing and presenting relevant EHSS information from disparate systems to be time-consuming, costly and a bottleneck to the deal process.

Expert transactional advice
ERM combines leading technology with deep EHSS insight to provide smarter and faster information preparation and analysis. Our secure portal enables potential buyers to access and visualize EHSS divesture data, which helps to simplify collaboration and minimize administration.

Our 400 M&A professionals around the world provide transactional advice and value-driven insights on more than 2,000 deals a year. We help our clients drive a competitive sales process and manage liabilities and reputations before, during and after divestiture.

Our services encompass:

  • Preparation for divestiture - consolidating, analyzing and presenting EHSS datasets to support sound decision-making;
  • Identification of critical risks - ensuring that they are addressed and mitigated prior to sale;
  • Readiness review - providing sellers with insights into how potential bidders will perceive and address risks and liabilities during due diligence and negotiations;
  • Due diligence support - provision of high-quality data to satisfy lenders including assessment requirements from multilateral and bilateral development agencies and/or Equator Principles financial institutions;
  • Risk/liability management throughout the process.

Optimizing asset value
By providing greater transparency around EHSS risk and opportunities, ERM helps to accelerate and mitigate risk from divestiture transactions. Our end-to-end services enable companies to:

  • Strengthen negotiations;
  • Enhance competitive tension;
  • Reduce business disruption; and
  • Defend against future claims.

As a result, companies can maximize asset value, satisfy shareholder expectations and protect against reputational issues.

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How can we help you? Contact us to discuss how we can help your organization.