How to divest products in business?

[Starmix]

Divesting products involves strategically selling or spinning off non-core business units or assets to enhance shareholder value and focus on core competencies.

The following are the structured applications:

• Define the scope and rationale by identifying the non-core assets, assessing interdependencies, and developing a compelling exit story.
• Assembling a dedicated team by creating a sell-side capability, maintaining a buyer database, and engaging advisors.
• Optimizing timing and valuation by selling at the right time, applying value criteria, and conducting robust de-integration planning.
• Structuring the right structure by asset sales, entity sales,
• carve-outs and spin-offs.
• Managing employee and customer transitions by addressing employee concerns and mitigating customer disruption.
• Reallocating resources by reinvesting profits and eliminating redundant costs.

By following these steps, companies can transform divestitures from cost-cutting measures into strategic opportunities to unlock growth and shareholder value.

 

[Augusta]

Identify the product(s) for divestment: This involves analyzing the product portfolio, assessing its performance, and determining if it aligns with the company's long-term goals.

 

[Starmix]

This is especially done by big-time business owners, businesses that run like a pro and stand out from other businesses. Small businesses might have other ways.