Opinion: Why corporates are turning to Dealsuite for divestitures
As the seasons turned from summer to autumn, the team and I felt the M&A market shifting. The drivers were obvious: Global inflation and interest rates climbing. Energy prices are soaring. War in Ukraine grinding on. A few months later, this feeling has turned into reality. With VUCA levels high, it has been no surprise to see a rise in sell side activity.
At Dealsuite, our platform gives us access to vast data sets which we use to monitor market sentiment. Compared with November 2021, we’ve seen 64% more sell side projects listed in the segment below 10m revenue and 93% more for corporates with +€10m revenue. The data is supported by anecdotes gathered from clients and prospects who want to know how they can use Dealsuite to divest. So, yes, sell side activity is rising fast on Dealsuite. Corporates that are now considering divestitures will further boost those numbers.
Divestitures occur at all times in an economic cycle, and when completed during periods of uncertainty, they can allow corporates to create focus, increase output, and alter strategy. Vodafone’s sale (or, as they labelled it, deconsolidating) of 50% of Vantage Towers, a $15bn phone masts business, shows a company creating focus. The transaction was described by French investor, Xavier Niel, as an “opportunity to accelerate... the streamlining of Vodafone’s footprint and the separation of its infrastructure assets.” KPMG’s Head of M&A in The Netherlands, Danny Bosker, notes an increase in strategic divesting, saying, "Divestments are increasing because companies are taking advantage of the uncertain climate to 'move on' and improve their operations."
Vodafone’s approach and Mr Bosker’s view is reflected in what we’re seeing amongst our network. Divestitures are being initiated by CEOs and heads of M&A who want to sustain and strengthen by creating leaner organisations. The global economy is changing, and M&A is being used as an instrument to take advantage of that change. Churchill said, never let a good crisis go to waste. For many, this downturn is a chance to optimise.
Dealsuite.com provides the tools our users need so they can adapt to market conditions and remain in control of the divestiture process. Whether selling an entire business or a single unit, our platform efficiently matches corporates with acquirers by allowing them to post a sell side project that can be viewed by our network. Right now, there are over a thousand “on the market” sell side projects on our platform. Users also gain access to our networking features, enabling them to scan the market for partners, connect, and reach out when the time’s right. All these activities are carried out in a secure, anonymous environment.
In the up markets of recent years, we built a thriving network and a huge amount of trust amongst our users by helping acquisitive companies find their next deal and grow. With markets turning, that network and trust is helping corporates on the other side of the trade, empowering a community that’s actively seeking to optimise via divesting. As we all know, M&A is a marketplace with two equally important sides. Dealsuite helps all participants to achieve their M&A goals, whether buying or selling, wherever we are in the economic cycle.
Throughout my career in M&A, working for many years as an advisor and now in technology, I have experienced the highs and the lows of many market cycles. As a result, I understand how Dealsuite’s power can meet the needs of all of our users, whatever it is they are seeking to achieve. I’d be delighted to discuss your corporate divestiture needs and use my experience and our technology to help your business, so please get in touch with me. I’d love to chat.