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Gain deeper insight into your industry and competitors with the help of our comprehensive industry reports
Our report on divesting has all the information you need to know about selling off parts of your company.
To find out how you can best approach divestment, contact the team at Nash Advisory.
Divestment is the intricate process of selling a portion or division of your company. Divestment needs to be handled with confidence and expertise, leading to ideal outcomes for your and your business looking forward. Our guide to divestment can help you understand:
Superior knowledge will get you a better divestment. See our sample report to find out what you're missing. We will create a customised valuation report worth $5,000 for your business.
To create your report, we will contact you and get an understanding of your business. We can give you the insights you need.
Achieving the best sale price for your divestment means finding the ideal buyer, and we are the specialists. Our global network of contacts includes international businesses, ASX listed companies, and private equity firms.
Our team has extensive experience working with private equity firms, corporate departments, and private owners who need assistance in divesting their business.
4 weeks
We ensure you fully understand what’s involved in the divestment process and take time to understand the key drivers for your decision to divest.
6 - 12 weeks
Preparing for a divestment can be lengthy, but we do everything we can to ensure the sale goes smoothly and you get the best outcome.
4 weeks
We research the current and potential pool of investors and understand where your business is positioned in the market and the industry.
6 weeks
We take your business to our network of contacts to find the most suitable investor. Finding the right investor is an essential part of getting the best deal.
4 weeks
Negotiating with all stakeholders in a divestment can be delicate. We are experts in handling these negotiations and representing your interests.
6 weeks
Investors need to perform their due diligence to ensure your business is suitable for them. We can help manage and guide this process.
2 weeks
The last step is to finalise the purchase. We'll make sure this goes smoothly, including the signing and cash flows.
4 weeks
We ensure you fully understand what’s involved in the divestment process and take time to understand the key drivers for your decision to divest.
6 - 12 weeks
Preparing for a divestment can be lengthy, but we do everything we can to ensure the sale goes smoothly and you get the best outcome.
4 weeks
We research the current and potential pool of investors and understand where your business is positioned in the market and the industry.
6 weeks
We take your business to our network of contacts to find the most suitable investor. Finding the right investor is an essential part of getting the best deal.
4 weeks
Negotiating with all stakeholders in a divestment can be delicate. We are experts in handling these negotiations and representing your interests.
6 weeks
Investors need to perform their due diligence to ensure your business is suitable for them. We can help manage and guide this process.
4 weeks
We ensure you fully understand what’s involved in the divestment process and take time to understand the key drivers for your decision to divest.
6 - 12 weeks
Preparing for a divestment can be lengthy, but we do everything we can to ensure the sale goes smoothly and you get the best outcome.
4 weeks
We research the current and potential pool of investors and understand where your business is positioned in the market and the industry.
We work systematically through each step of the process while handling a divestment, ensuring that every aspect of sale is in order.
As one of our clients, you will be in direct contact with our directors at all times. We will handle your divestment from start to finish.
We have a network of buyers in a wide variety of industries. Our contacts include International businesses, ASX listed companies, private equity firms, and local industry trade firms.
Our team all have extensive business experience. We understand what buyers are looking for because we have been in their shoes.
Our team can help you understand the best approach to your situation, and guide you through each step.
We typically like to match the business and management team with our background of buyers and investors within our network. This results in a better outcome and ensures the process is kept relatively private.
In the circumstances where the business is not sold, it's our hope that the client has received a good education out of the divestment process (as most owners have never been through this experience), and the business will be in a much better position since it is now sale ready.
Our intention is that all the engagements that we take on will result in a positive outcome for our clients. We take the appropriate steps to ensure that both ourselves and client are on the same page regarding valuation and deal terms from early in the process.
Depending on the size of the business, private equity will generally look to have the owners leave cash or equity in the deal over a period of time, while a trade buyer will typically look to acquire 100 per cent of the business on day one.
Private equity firms are generally hands on investors and will work with you actively, whereas if you continue working in the business post transaction with a trade buyer, it will typically be business as usual.
In regards to capital raising, high net worth investors are usually retired business owners, or active executives looking to capitalise on trends in sectors they are familiar with. Private equity investors are management teams who use capital to make purchases and investments.
Usually if the earnings of the business have increased significantly over a short period or if there is a contract pending or about to end near the date of sale, buyers typically ask for 'retention amount' or 'earnout' which means it could be a scenario where only 80 per cent of the funds are paid on the settlement date and 20 per cent are paid in the future, usually within one or two years. In some cases, this can be a good thing as the last 20 per cent may be worth more at a future valuation.
In most cases, deposits are not paid. The reason for this is that most buyers need to spend a significant amount of expenses (often $100,000 to $300,000) to conduct their due diligence on the business. There are ways to protect yourself during the course of selling your business so that you don't waste time and to ensure the buyer is truly 'buying into the process'. We have used many of these techniques to ensure the buyer follows through or pulls out early on in the process so that they do not waste your time.
