Article
Global dealmakers 2024: Divestitures in M&A transactions
Dec 01, 2024
Dealmakers are sending strong and clear signals that divestitures will play a pivotal role in shaping corporate strategies and driving mergers and acquisitions (M&A), especially in the U.S. market going forward. Nearly half of dealmakers (48%) interviewed for this research are considering divestitures or carve-outs, having already completed at least one such transaction in the past 12-24 months. This underscores a growing recognition of the value that divestitures can bring to organizations, not merely as a means of shedding noncore assets but as a strategic maneuver to streamline operations and enhance financial performance.
This report looks at the trends and challenges driving divestitures, providing insight into new opportunities and best practices for dealmakers.
This study reveals:
- The impact divestitures will have on the U.S. M&A market in 2024 and beyond
- Key drivers of asset sell-offs
- How carve-outs are being used – and how dealmakers can maximize value from these deals
- Challenges impacting the divestiture outcomes – and where improvements can be made.
William Chapman, PrincipalCarve-outs also offer advantages in terms of risk management, according to 57% of survey respondents. In today’s increasingly complex and uncertain business environment, carve-outs enable the parent company to isolate riskier or non-core businesses from its main operations, thereby protecting the broader organization from potential downsides.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
This article was originally published by Baker Tilly International.