Using convolutes in divestitures

When it comes to divestitures, having a well-formed strategy is key. A successful divestiture can result in a more focused and profitable company. One strategy that is often overlooked is the use of convolutes.

Convolutes are essentially a way of packaging assets together, allowing for a more streamlined and efficient sale. This technique can be particularly useful when selling off non-core assets that may be difficult to sell individually.

Here's how it works:

Imagine you are looking to sell off a few smaller business units that are not central to your company's core operations. Rather than selling them off individually, you could package them together into a convolute. This convolute could include all the assets and intellectual property associated with these business units, along with any agreements or contracts in place.

By packaging these assets together, you create a more attractive package for a potential buyer. They will have a better understanding of what is being sold, along with a sense of the synergies that could be created by owning all of these assets. This can lead to a faster sale, more favorable terms, and ultimately a more successful divestiture.

Of course, using convolutes in divestitures requires careful planning and execution. You want to be sure that the assets you are packaging together truly make sense as a group. You also want to be sure that the convolute is well-structured and easy to understand for potential buyers.

Overall, though, convolutes can be a powerful tool in any divestiture strategy. By packaging assets more efficiently, you can increase your chances of a successful sale and ultimately create a more focused and profitable company.