Do you have a subsidiary business that doesn't align with core competencies and is difficult to manage? The divestment of non-performing or non-core divisions could be the answer.
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There are a multitude of reasons why you might be considering selling a subsidiary business. Each parent company is unique and have their own reasons for considering a carve-out, but some possibilities include:
- Non-core or underperforming assets – a change in group strategy may mean that the subsidiary is no longer part of your long-term plans. If the business is underperforming, then you may decide to sell rather than invest heavily to transform or optimise the business.
- To raise capital – for companies seeking to remove non-performing assets or wanting to fund organic growth or acquisitions, a carve-out could be the ideal solution. In the 2021 EY Global Corporate Divestment Study, 85% of tech companies surveyed indicate that divesting to reinvest in higher-growth areas is a key reason for evaluating their portfolios.
- Reduce debt or strengthen the balance sheet – PwC reports that "60% of sellers experience higher EBITDA growth in the years following divestiture".
Why Jonas?
Financial backing - At the core of Jonas lies our strong balance sheet. We finance our acquisitions with no requirement for external funding, removing additional doubt from the acquisition process and enabling a quick and successful transaction process.
We know the industry - With years of experience in industry-specific software acquisitions, our in-depth knowledge means that we know a thing or two about the industry. With 100+ offices and 3,500+ employees worldwide, we take a keen interest in every single one of our brands, all whilst nurturing our people to grow and succeed.
We move at your pace - Do you need to make a quick sale? Perhaps you need to divest operations quickly to raise additional capital. Here at Jonas, we can move quickly and close the deal at a pace that works for you.
Consider the Long-term Plan for your Business
When choosing the best fit for a business that sits within your portfolio, you’ll no doubt be focusing on the long-term plans of the acquirer. How much will they change the business? Will they strip it of its unique identity?
At Jonas, we know better than most that acquiring businesses is about more than just buying companies. It’s about taking a historic brand and its people and making it even better, whilst retaining the original values and unique flair. There’s no risk of us coming in and stripping your business of its identity – instead, we take pride in building on your foundations and supporting both the business and individuals in reaching their aspirations.
What About the Employee Experience?
Whilst all business sales will be different, we believe that the acquired company offers far more than just financial benefits. Knowledge and experience often go hand in hand with any financial gain. As well as offering a home for life for the business, the same goes for the employees who wish to remain. Managers and staff on the ‘front line’ are given autonomy to continue making the important day to day decisions. Overlaying our best practices built up over decades of learning, coupled with the dedication of the team who know the software and customer base, we feel is a great force to be reckoned with.
Are you selling a subsidiary business or representing someone who is selling? Why not contact us at Jonas for a no-obligation chat? Tell us your immediate plans, short-term goals and long-term aspirations. We like to listen but love to learn.
