Sell and Separate-Divestment

Sell and Separate-Divestment

Divest with Precision. Reinvest with Vision

Divestment is the strategic process of selling or spinning off non-core assets, subsidiaries, or business units to refocus on core objectives, optimize capital allocation, or meet regulatory requirements.

At IFAS, we reimagine divestments as proactive, value-driven initiatives rather than reactive exits. Leveraging our holistic expertise, we guide organizations in transforming divestments into opportunities to strengthen competitive positioning, unlock hidden value, and align with long-term strategic priorities. Our approach ensures each transaction is executed with precision, transparency, and a focus on maximizing returns while maintaining stakeholder confidence.

    1 - Strategic Rationale & Preparation

    (Align divestment with corporate strategy and market timing.)
    • Value Maximization: Identify “crown jewel” assets vs. underperformers using proprietary analytics.
    • Buyer Targeting: Profile strategic buyers, PE firms, or competitors likely to pay premiums.

    2 - Financial Valuation & Structuring

    (Optimize pricing and transaction terms.)

    Our Approach:

    • Standalone Valuation: Model the asset’s intrinsic value using DCF, comparables, or precedent transactions.
    • Tax Efficiency: Structure sales as asset vs. share deals under Income Tax Act rules to minimize liabilities.
    • Earnouts: Tie payments to post-sale performance (e.g., revenue milestones).

    3 - Operational Carve-Out Readiness

    (Ensure the asset operates independently post-divestment.)

    Key Steps:

    • TSA Negotiation: Draft transition service agreements (TSAs) for shared IT, HR, or supply chain support.
    • Legal Separation: Reassign contracts, licenses, and IP ownership.
    • Employee Transition: Address pension liabilities, benefits, and retention incentives.

    4 - Post-Divestment Optimization

    (Reinvest proceeds for growth.)

    Strategies:

    • Debt Repayment: Reduce leverage ratios to improve credit ratings.
    • M&A Reinvestment: Fund acquisitions in priority sectors.
    • Share Buybacks: Enhance shareholder returns.

Strategy and Analytics

Commercial Statistics & Growth Strategy



Commercial Statistics & Growth Strategy

Read More

Business Incentives & Tax Credits




Business Incentives & Tax Credits

Read More

Business Mergers and Acquisitions (M&A)



Business Mergers and Acquisitions (M&A)

Read More

Sell and Separate-Divestment



Sell and Separate-Divestment

Read More

Business Expansion Grants and Contributions



Business Expansion Grants and Contributions

Read More