When it comes to selling a business, a successful strategy requires active portfolio management and a well-planned sell-side process.
Active portfolio management by large listed and privately-owned companies is seeing a resurgence. The current economic climate, cost of financing, intervention by activist investors and the heightened ESG scrutiny all play a role. Shareholder value is maximised with active portfolio management; focusing the right resources (both capital and human) into the right areas. This includes a clear, focussed strategy extracting maximum value from any businesses which no longer fit.
For a lot of public and private companies, actively managing their portfolio will result in identifying, assessing and partially or fully exiting areas of the business to generate cash to strengthen balance sheets, pay down debt, invest in core activities or enhance shareholder value.