While 55% of divestitures create immediate value, choosing the right exit route is key to maximizing that value. In this infographic, BCG reveals the particular parameters that companies need to asses when choosing their particular exit route. Read the full report: http://on.bcg.com/1tVU8aH

1. DON’T MISS THE EXIT
CREATING SHAREHOLDER VALUE
THROUGH DIVESTITURES
Spin-off to the
company’s shareholders
ROUTE 2
ROUTE 3
Trade sale
to another buyer
ROUTE 1
Companies can choose from
THREE EXIT ROUTES
THE RIGHT ROUTE
depends on the interaction of three parameters
The financial
strength, profitability,
and strategy of the
parent company
The volatility, valuation
levels, and point in the
cycle of the market
The industry, quality, and
innovativeness of the asset
1
2
3
INCREASE6.6%
T H E B O T T O M L I N E I S
Companies that make the right decisions
experience, on average, a 6.6% increase
in shareholder value in the days following
a divestiture announcement.
Carve-out, in which the
parent company sells a partial
interest to the public while
retaining ownership
Four out of five shareholders believe
companies should divest more aggressively
!CAUTION
55% of all divestitures are
immediately value-creating
But choosing the right exit strategy
goes a long way toward determining
whether a divestiture is a success
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