Private equity: experts at extracting hidden value

Spotlight on EY’s 2016 Global Corporate Divestment Study
Private equity: experts at
extracting hidden value
ey.com/divest
49% of
companies
plan to divest
in the next
24 months
Private equity (PE) firms are serial buyers and sellers that often
exit businesses at a valuation that is multiple times the original
purchase price. What can corporate sellers learn from PE?
Most companies do not focus on creating value in a business they plan to divest. Rather,
many do not invest the time or effort to increase transaction certainty and maximize sale
proceeds. This year’s Global Corporate Divestment Study — to be released in January 2016 —
focuses on the critical lessons that corporations can learn from private equity in order to
increase divestment success. It is based on interviews with 900 global C-suite executives
and 100 private equity companies, as well as external data from 2,000 divestments within
the last three years.
Schedule a meeting with us to review the report findings, discuss what the insights mean
for your business and understand how to manage a successful sale process.
Study highlights
Invest in data and analytics
What do we need to make better invest versus divest decisions?
Corporations can be slower than PE firms at making decisions to sell. They often don’t review their
portfolios frequently enough or their performance data may not provide the information needed to
make effective, timely decisions. Our report considers how to access business-specific data and which
analytics capabilities could enable smarter portfolio decisions.
Take back the upside
Where are we losing value in execution?
Most executives prioritize value over speed, but they continue to take shortcuts that leave value
on the table. Read about what’s most important to communicate in your value story and how
you need to think like a buyer.
Split it up
To what extent do we have to separate the businesses before we sell?
Sellers have to make an asset easy to buy. They have to operationally separate the business and/
or create a compelling vision of how the business will be separated and how it would fit into the
buyer’s organization. Learn why you can’t wait to do this until a buyer is known.
Industry reports also coming soon:
• Consumer products
• Financial services
• Life sciences
• Technology
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About EY’s Transaction Advisory Services
How you manage your capital agenda
today will define your competitive position
tomorrow. We work with clients to create
social and economic value by helping them
make better, more informed decisions
about strategically managing capital and
transactions in fast-changing markets.
Whether you’re preserving, optimizing, raising
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Services combine a unique set of skills, insight
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We help you drive competitive advantage and
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To learn more and to have a
conversation about your
divestment strategy, please
contact us:
Olivier Hache
EY Managing Partner
Transaction Advisory Services
Mexico & Central America
[email protected]
+52 55 5283 1310