Can divesting help you capitalize on disruption?

Global Corporate Divestment Study 2017 Canadian findings

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In a world that seems to be ever more complicated, Canadian companies have actively been pruning their portfolio of businesses, according to the EY Global Corporate Divestment Study.

The survey found that 59% of Canadian participants disposed of businesses that were less than 5% of the parent company, compared to 41% of global participants. Despite the fact that Canadian companies are reaching so deep to identify non-core businesses, they’re creating value by doing so. In fact, 51% found that their divestment led to a valuation of the remaining business that exceeded their expectations.

Canadian companies outperform their global peers: 81% of Canadian companies believe they have been effective in continuing to create value in their businesses subject to a divestment, compared to 67% of global respondents.

Capitalizing on disruption: 73% of Canadian companies are likely to divest as a result of macroeconomic volatility. Technological change is also weighing on the minds on Canadian businesses. 54% of participants noted this as a reason for considering a divestment, and 46% planned to redeploy proceeds into digital capabilities.

Canadians are ahead of their global peers when it comes to using analytics: 86% of Canadian respondents plan to use sophisticated techniques such as predictive analytics to assist in their divestment efforts, more than 10% higher than their global peers.

Global Corporate Divestment Study Canada Findings 2017


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