Because divestitures create both short and long term value for organizations, it’s strongly recommended that sellers should focus on the divestitures’ potential for creating value.
The next steps outline the communication of value through the development of presentation material that brings the business to life. The objective is that when the management team speaks, buyers see a compelling set of data aligned with a credible story of the business that generates excitement, confidence, and trust.
Executive sponsor, separation manager and deal team
Meeting Agenda, Whiteboard, Strategy Documents
Spend one day or more to prepare materials for a two hour play.
In preparing a presentation, the first step is to describe the opportunities and challenges related to the transaction. This needs to explain why the business is being sold, and why would it be enticing to a prospective buyer. The objective is to get a sense of what will differentiate this business from the buyer’s perspective. This will help get an understanding business story and how to make it come alive in the management presentation.
Specific stories about business challenges and successes need to be developed to help describe what makes the business tick. The best approach is to work with business managers and gather anecdotal evidence of the business as a way of developing stories. These stories help provide a deep understanding of what makes the business unique.
Now match stories to investment highlights. Themes emerge during this process that helps create a logical outline for the presentation. Where there are gaps in the narrative, these need to be investigated further with more anecdotal evidence.
After a running order of the presentation has been developed, a storyboard is developed for each segment. The storyboard includes:
Once a storyboard has been developed and can be talked about positively, there needs to be a check that facts back the stories, and there isn’t too much ‘spin’.
Each presenter should make the slide presentation work in a way that fits their personality and the story they want to tell. Above all, this needs to be authentic, polished, and conversational in style.
Presenters should do a dry run and get additional feedback from the peer group. This is an opportunity to review body language, eye contact, voice, and use of props. Practice also allows the group to prepare and think through every possible issue prior to encountering the buyer.
An effective management presentation needs to be:
Before any divestiture, management needs to get an upfront assessment of their current resources. An organizational readiness assessment is a formal analysis and measurement of the seller’s ability to undertake such a major initiative.