Aligning bold divestment decisions with long-term strategy can help CEOs increase stakeholder value and reimagine the remaining business.
The past year has underscored how quickly customer needs and technology requirements change. Businesses that may long have been deemed critical to a portfolio may no longer be core. In fact, they could unnecessarily be taking up resources and utilizing capital that should be deployed elsewhere. To meet these challenges, CEOs can pursue value-enhancing divestments that are guided by long-term strategic interests rather than short-term financial metrics. This lens also provides a framework to reimagine the remaining business and operating model for the future.
According to the EY 2021 Global Corporate Divestment Study, CEOs say that a key divestment challenge is how to establish a strategy for the remaining business, with the majority of CEOs admitting they should provide better guidance as to what they regard as core and non-core to the company’s future. This may explain why a record number of companies globally say they’ve held onto assets too long when they should have divested them.
Join us for a discussion that focuses on:
- Aligning divestment decisions to your strategy and long-term value framework
- Pursuing divestitures to strengthen the portfolio and capture new growth opportunities
- Reimagining RemainCo to gain a competitive edge
- Dr. Mona Bitar, UK&I Consumer Industry Market Leader, Ernst & Young LLP
- Dr. Alexander Gehrt, Head of Group Mergers & Acquisitions and Head of Group Treasury/Risk Management, Clariant International Ltd
- Jerry Will, Senior Vice President of Corporate Development, 3M Company
- Juan Uro, EY-Parthenon Principal, Strategy and Transactions, Ernst & Young LLP