Successful Divestitures Need Proper Cultivation Harvard Case Solution & Analysis

Asset sales are often misunderstood as a way for corporations "take out the trash." In reality, however, refusing to be a strategic decision, which is beneficial for both the parent company and sold. Companies can choose to strip for legal, strategic or market reasons, and the sale can take many forms, including spin-offs, carve-outs, leveraged and management buyout. In any case, once the company decides that it's time to strip, as a parent handles deprivation process is crucial to the success of privatization. In this regard, managers play a key role in building relationships between parents and sold the device, and in the performance of the overall process. Process standardization, creating strong incentives and motivation, as well as enhanced privatization task force will facilitate implementation. Understanding all of these aspects will help companies to optimize their efforts change. "Hide
by Johanna Mair, Catherine Moschieri Source: IESE-Insight Magazine 8 pages. Publication Date: June 15, 2011. Prod. #: IIR053-PDF-ENG

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