Our experience allows us to be a good adviser to companies that intend to alienate some of their assets or businesses for different reasons. Our support consists not only in business advice, but also in identifying the corporate income tax and VAT implications of the transaction.
Firms may have several motives for divestitures:
- A firm may divest (sell) businesses that are not part of its core operations so that it can focus on what it does best.
- A firm may divest in order to obtain funds. Divestitures generate funds for a firm because they involve selling one of its businesses in exchange for cash.
- A firm's "break-up" value is sometimes believed to be greater than the value of the firm as a whole. In other words, the sum of a firm's individual asset liquidation values exceeds the market value of the firm's combined assets. This may encourage firms to sell off what would be worth more when liquidated than when retained.
- In order to enhance its stability, a firm may divest a part of its business.
- A firm may divest a part of its business, in order to eliminate a division which is under-performing or even failing.
- In some cases, regulatory authorities may demand divestiture (for example, in order to create competition inside a market).
We customize our divestment services to be in compliance to all and every reason above.