Assembling the divestiture team, Financial Management

Assembling the Divestiture Team:

Divestment of a business requires a team of functional experts under the direction of an experienced project manager. The first and foremost action that is to be taken after reaching the decision to divest pertains to the selection of the project manager. Along with general management skills, the project manager must also be knowledgeable in the tasks and techniques necessary to bring about a successful divestiture. People possessing these types of skills usually reside in the corporate development function. Corporations devoid of a formal corporate development activity may find qualified divestiture managers within the financial, legal or corporate planning departments. The appointment of an internal project manager and core team is absolutely critical even in those instances where an investment banker or some other intermediary is engaged by the corporation to assist in the divestiture.

Assembling the core team is the first task of the project manager. The composition of the core team will vary depending on the specific nature of the divestiture and generally includes someone who is extremely knowledgeable about the business being sold and from the corporate financial function. In this case practical, close association of a member of the corporate legal staff with the activities of the core team from the very beginning of the project will facilitate preparation of the offering memorandum, the negotiations and writing of the letter of intent and definitive purchase agreement. The core team will also need assistance from time to time during the project from other functional areas of the corporation, which may include the tax department, human resources, corporate communications, and the corporate controller.

 

Posted Date: 9/11/2012 5:44:56 AM | Location : United States







Related Discussions:- Assembling the divestiture team, Assignment Help, Ask Question on Assembling the divestiture team, Get Answer, Expert's Help, Assembling the divestiture team Discussions

Write discussion on Assembling the divestiture team
Your posts are moderated
Related Questions
Why is the replacement value of assets method not generally used to value complete businesses? The replacement value of assets method isn't often applied to entire business val

Describe the sales forecasting process. Sales assumptions are a group effort. Marketing and Sales personnel usually provide assessments of demand and the competition.  Producti

How are financing costs generally incorporated into the capital budgeting analysis process? Financing costs are generally captured in the discount or hurdle rate while doing NPV

Calculate Debt or Equity Ratio XYZ LIMITED Key data related to XYZ for last three years is as follows:   2011/12 2010/12

Product Advantages: A firm that has developed a reputation for superior products in the domestic market may find acceptance from the foreign consumers as well. Hence, such firm

On-the-run treasury issues are the most recently auctioned issues of a given maturity. They include Treasury bills of 3-month, 6-month and 1-year maturity;  treas

Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of

Types of Traders in Future and Option Markets: Hedgers Hedgers use the futures and options market principally for risk management purposes because of their exposure to pri

What is meaning of Perpetuity If annuity is expected to go on forever then it is known as a perpetuity and then the above formula reduces to: Present value: A/i Perpetuit

You are currently an Analyst working for a finance publication firm and as part of your responsibilities; you are required to provide a monthly forecast and analysis of certain com