Divestments (& Privatisations)

The divestment (sell-side) process is inevitably very similar to the procedure for planning and executing a corporate deal from the buy-side (see M&A Advisory) and involves most of the same skills and work from AWR Lloyd as an advisor.

AWR Lloyd first agrees a timeline and process with the client. We conduct an in-depth evaluation of the company or asset in question and develop a detailed discounted cash flow (DCF) valuation analysis. We also prepare multiples analysis based on listed company values and M&A transactions to support the DCF analysis.

AWR Lloyd typically prepares an anonymous ‘teaser’ note, an information memorandum and a roadshow presentation. In most cases we also assist in the preparation of a data room. We prepare a list of potential acquirers (e.g. private equity funds, industry players, trading companies…) with short profiles and advise on prioritization and tactics for approaching them. We assist in preparing buyer meeting roadshows and then either conduct them ourselves or in conjunction with our client.

We then facilitate exchange of confidentiality agreements and transmission of preliminary information materials to potential acquirers. After submission of indicative bids we then advise on short-listing, MOUs and facilitate site visits, data room access and due diligence meetings for short-listed buyers. AWR Lloyd then assists in the final negotiations, structuring and transaction documentation in conjunction with the client’s lawyers and any other advisors.

For example: AWR Lloyd advised on the privatization of a large aluminium smelting group in Eastern Europe. AWR Lloyd worked with the World Bank and an investment bank to advise the government on the divestment process. AWR Lloyd advised on the valuation analysis, prepared a data room and information memorandum, identified potential buyers and assisted in the final negotiations. A majority shareholding company was eventually sold to an American metals trading group.