Optimising value through the strategic exit of underperforming or non-core assets and operations.
Whilst acquisitions often get media attention, business separations and wind downs remain important options for boards and executives seeking to reposition and reset their organisations.
Our approach may include supporting a discrete separation or wind down initiative or using our experience and insight to achieve a broader set of transformation and turnaround objectives.
How we can help you
We provide commercially focused and strategic advisory services.
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Separation and wind down initiatives can be complex. These activities may bring periods of heightened media and public scrutiny. We help design the process to manage risk and maximise value. We establish clear targets and objectives, providing an achievable set of success measures.
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We help clients unlock significant value through resetting and reducing lease liabilities. We assess footprint requirements, financial liability and legal and commercial leverage. Complete scenario modelling of existing lease liabilities to develop exit negotiation strategies and wind down plans.
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We help clients focus on delivering results, minimising stakeholder noise and managing risks by identifying and developing stakeholder management plans, facilitating employee separations and redeployment processes and financial management of the wind down,
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Business unit divestments have different transaction focus, prioritising price, rapid exit, minimising exit cost, employee experience or reputational considerations. We help navigate competing priorities by working through the process, including realising shared services efficiencies and avoiding stranded costs.
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Failure to prioritise people and manage human resources and industrial relations concerns during a separation or wind down can result in compromised outcomes. We help clients design and implement future-state operating models, organisation structures and right-sizing.
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We work with boards, owners and management teams to understand an organisation's restructuring goals, then guide them through the various restructuring options available in consideration of The Corporation Act.
Our experience
We bring an evidence-based approach to our work with a strong emphasis on action and results.
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Masters Home Improvement
Big-box hardware chain Masters Home Improvement (operated by ASX retailer Woolworths Limited) had failed to effectively penetrate the lucrative home improvement market dominated by Bunnings Warehouse. A decision was made to wind down the business, with the focus on a smooth transition and preserving value, where possible.
The senior management team and I are very proud of the manner in which the shutdown was conducted and the value of KordaMentha's insight and counsel cannot be underestimated.
