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Strategic sales will double in 2016, funding growth for companies

70 % of companies are using divestments to fund growth.

On the whole, compared with last year, companies are more focused on investing in organic growth and less on using divestment funds for an acquisition or pursuing new markets. For example, compared with last year, 35% fewer companies are planning to make an acquisition with divestment proceeds (11% versus 17%). Those who did use their previous divestment to fund an acquisition were 62% more likely to have experienced a higher-than-expected valuation multiple on the remaining business postsale than a company that used the funds to pay down debt (47% versus 29%).

 

For more information, please see the attached file or the Romanian version of the article, here.

Authors

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ERNST & YOUNG SRL