The divestiture mindset
While acquisitions and divestitures are both effective tools in the tech executive’s strategic arsenal, each requires a distinctly different mindset and preparation.
For acquisitions, buyers typically have latitude to get organized and sharpen their integration strategy to focus on delivering the deal rationale (e.g., strategic growth, consolidation, transformation) while minimizing business disruptions.
In contrast, sellers are on the clock throughout the sale process. They are expected to demonstrate in-depth knowledge of the divesting assets, as well as lay out a clear path to full separation. Any ambiguity regarding the deal perimeter, financials or separation timeline erodes deal value. It may also cast doubt on management competency, prolong deal uncertainty and can negatively affects the business.
Top tech sellers rely on meticulous planning and preparation across each of the six operational levers to attract buyers to their tech assets and to enable smooth and timely separation from the remaining business.