Business leaders underestimate the detailed planning required. Sellers often end up in front of a buyer unprepared to answer many of the buyer’s questions, and the process begins to linger as the seller scrambles to answer those questions. The longer a divestiture takes to close, the greater the risk to the seller’s value proposition.
Unless a company has participated in a divestiture previously, it’s not uncommon to have the misconception that the effort will be quick and easy with leadership providing inadequate time and resources to the process. “People have day jobs. Divestiture is just what they do after 5 p.m., and it gets second-class attention,” says Munzoor Shaikh, senior manager of healthcare transaction services at West Monroe Partners.
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