Divestitures or “Divestment” allows companies to divest of a business unit that is not part of its core operations. By selling or “divesting” the unit, the company can obtain cash to restructure it’s current debt and concentrate on growing another part of the business. This can be a smart strategy for a company when acquisitions don’t prove to be beneficial towards the overall growth strategy, or when the company is heading a different direction from a business unit, but the business unit still has “value”, perhaps to a strategic or financial investor.
Divestitures are a considered a method for creating additional shareholder value, and ultimately maximizing shareholder return. By considering a corporate divestiture throughout the corporate strategy planning lifecycle (not just when times get tough), shareholders and management can benefit from a well timed and thought out divestiture. In many instances, a company is a smaller entity of a larger corporation, and may approach the larger entity to do their own “buyout” as a possible solution to the company divestiture strategy. This type of middle market divestiture is appealing to the larger organization and the management team, because management is gaining control back from the corporate entity, and the corporate entity is relieved from supporting what they believe to be an under-performing asset, or an asset that they need to divest from in order to free up capital for its core competencies and business.
Lantern Advisors helps companies and management teams CONFIDENTIALLY explore corporate divestment opportunities in order to grow, achieve alternative capital structures, or restructure corporate debt.
Lantern Capital Advisors is not a broker. We are corporate finance consultants that specialize in corporate financial planning and finance, specifically geared towards representing established middle market companies to achieve their strategies, and realize their potential. We don’t accept referral fees, broker fees, or equity as any compensation from any client or institution.
Our middle market divestiture, corporate debt restructuring, and investment banking alternative methodology is very efficient, effective and proven. Same as an investment banker, Lantern Capital Advisors can very quickly package a company for the market, confidentially solicit institutional interest, and negotiate proposals. Our difference is that we do our work on an hourly consulting model basis, and do not charge our clients based on the value of the transaction.
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