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Public companies, privately-held family businesses and private equity owned entities execute spin-offs and divestiture transactions of divisions or subsidiaries to raise funds vital for strategic expansions. The parent may also wish to exit a division or line of business since it's inconsistent with the company's core business activities. Whatever may be the reason for spinning off a division/unit, Ventures4growth brings to bear its proven expertise in preparing small and medium sized enterprises to ensure they become attractive to an industry-specific strategic buyer or another financial buyer or a private equity fund.
- Finding the right buyer is often the most critical and challenging aspect for spin-outs given the complexities involved. Sometimes strategic buyers are required since operating assets used by the unit must be retained by the parent
- Extensive preparations are required by the parent company to position the soon-to-be divested subsidiary or unit for takeover
- Certain spin-offs may not be suitable for broad-based auction process and requires a targeted and structured approach
- V4G works alongside the management and endeavors to understand the critical issues involved and suggest solutions that ideally suit sellers
- We assist in securing financing when a transaction is purely motivated by liquidity needs of the parent to be funded by a special closing dividend or a pre-arranged stapled funding package
- Our relationship with a broad-range of institutional investors ensures that special financing is available when necessary, and is sourced concurrently with the sale process itself.
V4G ensures that the management team of the parent is always part of the decision loop without getting bogged down by the deal complexities. We run the process in a manner that streamlines the client's involvement, thus allowing them to concentrate on core businesses. Completing a due-diligence on future business expectations and anticipated standalone earnings is a must before initiating a spin-out/off process, which we help sellers develop.
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