When a business takes the decision to divest a part of itself, there are a number of complicating factors that stand in the way of success, for both the seller and the acquirer. These have only been exacerbated recently by the long tail of COVID, by the war in Ukraine, by supply chain issues, by the tightening labour market, and by rapid inflation. However, the money is still there for good deals, both in the full coffers of PE houses, and from debt funders looking to deploy cash.
Separation and integration projects have differing objectives for sellers and buyers, but both need now more than ever to deliver for their respective stakeholders. The money in the market needs to be invested, and is available for the right transaction.