Why companies continue to divest

8 minute read 6 Jun 2019
8 minute read 6 Jun 2019
Related topics Strategy and Transactions Divestitures
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Companies looking to divest are not being distracted by noise and negotiating in the news.

Global Divestitures Leader Paul Hammes appeared on Fox Business program Mornings with Maria to discuss the impact of US tensions with China on corporates and companies looking to divest. Paul told host Maria Bartiromo that, so far, tariffs imposed by the US have been well absorbed by the business community.

The EY Global Corporate Divestment Study finds that two-thirds of companies now review their portfolios twice a year, signaling that this is a strategic allocation of capital within organizations. “Most companies really see a lot of the tariffs and a lot of the activity right now as very temporary, and they’re moving forward with their plans,” he said. “A very rigorous portfolio review process, already in place in a very resilient-to-competitive market, has not changed that dynamic at all for companies looking to divest in the field.”

The trend to divest continues, especially with activist investors, a record amount of private equity dry powder and high multiples.

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Summary

Listen to Paul Hammes on Fox Business Mornings with Maria, talking about continuing strong outlook for divestitures as companies have adopted portfolio reviews as strategic allocation of capital.

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Related topics Strategy and Transactions Divestitures
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