Corporate Divestitures: A Mergers and Acquisitions Best Practices Guide

316 Pages·2008·1.98 MB·English

by  William J. Gole

C D
ORPORATE IVESTITURES
A M
ERGERS AND
A B
CQUISITIONS EST
P G
RACTICES UIDE
W J. G
ILLIAM OLE
P J. H
AUL ILGER
JOHN WILEY & SONS, INC.
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C D
ORPORATE IVESTITURES
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C D
ORPORATE IVESTITURES
A M
ERGERS AND
A B
CQUISITIONS EST
P G
RACTICES UIDE
W J. G
ILLIAM OLE
P J. H
AUL ILGER
JOHN WILEY & SONS, INC.
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(cid:1)
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Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved.
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Library of Congress Cataloging-in-Publication Data
Gole, William J.
Corporate divestitures : a mergers and acquisitions best practices guide / William J.
Gole, Paul J. Hilger.
p. cm.
Includes index.
ISBN 978-0-470-18000-6 (cloth)
1. Corporate divestiture. 2. Consolidation and merger of corporations. I. Hilger,
Paul J., 1959- II. Title.
HD2746.6.G65 2008
658.1'64–dc22
2007048495
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To my brother, Henry, who ignited the fl ame of intellectual
curiosity at an early age; and to my wife, Rosemary, who has
supported me in all my endeavors, regardless of where they
have taken us.
— WILLIAM J. GOLE
There isn ’ t enough space to acknowledge all of the gifted
professionals I ’ ve had the privilege of working with and who
served as my role models over the years. But I would especially
like to mention Bill Schlegel, whose peer as a leader and m entor
I have yet to meet, and Joe Tomaselli, who transformed my
understanding of effective communications. Finally, thanks
to my wife, Isabel Czech, for her unending encouragement,
and to my children, Lauren and Stephen, for their ability
to make me laugh.
— PAUL J. HILGER
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CONTENTS
P
REFACE XI
A
CKNOWLEDGMENTS XV
C 1 I 1
HAPTER NTRODUCTION
1.1 Overview 2
1.2 Characteristics of Corporate
Divestitures 3
1.3 Transaction Model 10
1.4 Staffi ng Model 15
1.5 Enabling Principles 23
1.6 How This Guide Can Help 27
Key Points 30
Appendix 1A Divestiture Activity by
Standard Industrial Classifi cation:
2002 to 2006 32
Appendix 1B Aggressive Divesters: 2005
and 2006 33
C 2 S A 34
HAPTER TRATEGIC SSESSMENT
2.1 Overview 35
2.2 Strategic Assessment Process Steps 36
2.3 Analyze Portfolio and Consider
Alternatives 37
2.4 Opt for Divestiture 41
2.5 Position the Organization for the
Divestiture 46
vii
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viii Contents
2.6 Next Steps 52
Key Points 52
C 3 D P 54
HAPTER IVESTITURE LANNING
3.1 Overview 55
3.2 Planning Phase Process Steps 60
3.3 Approval 62
3.4 Organization Plan 70
3.5 Retention Plan 74
3.6 Assembling the Divestiture Team 78
3.7 Development of the Divestiture Plan 86
3.8 Development of a Communication
Plan 89
Key Points 95
Appendix 3A Illustrative Divestiture
Timeline 96
Appendix 3B Retention Planning
Document 99
Appendix 3C Weekly Action Item Control 102
Appendix 3D Communication Plan
Outline 104
Appendix 3E Issues and Resolution
Control 106
C 4 P T 108
HAPTER REPARING FOR THE RANSACTION
4.1 Introduction 109
4.2 Preparation Phase Process Steps 110
4.3 Engagement of External Resources 111
4.4 Validation of the Transaction
Structure 120
4.5 Development of Selling Materials 122
4.6 Identifi cation of Potential Buyers 131
4.7 Preparation of a Data Room 134
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