Sales and Divestitures
A variety of motives, objectives and circumstances can trigger the desire to explore the partial sale or complete divestiture of an investment management business . . .
- A bank insurer, trust organization has . Its investment management affiliate is no longer
a good fit. The reasons could include:
- Moving away from a particular geography, client segment or product strategy
- Merger with another financial institution with overlapping capabilities
- Move to open architecture – the affiliate’s proprietary products are an awkward fit.
Cambridge is positioned to provide expert advice to assist owners in achieving these and other objectives in the search for a strategic partner. Most clients wish us to explore opportunities with a targeted range of prospects. Many engage us having already commenced a dialogue with one favored potential partner.
The value we bring to the process includes. . .
- An organized and competitive process that assures our client of the best available balance of valuation, transaction terms and strategic/cultural fit.
- Deep existing relationships with the CEOs or business heads of strategic and financial investors in the financial services industry around the world. Our exploration will be targeted – our dialogue strategic and at a high level in the organization.
- Confidential process – client and employee relationships are protected. Our clients stay in control of when and how to signal their intentions. This can be a particularly sensitive issue in targeted geographic markets or industry segments.
- Detailed understanding of the “hard” (e.g. valuation) and “soft” (e.g. post-transaction governance) issues that emerge in finding the right partner and fashioning a transaction.
- Cambridge’s principals are your key advisors – we stay fully involved throughout the entire process.
- Providing the bridge when negotiations get tough – we help insulate our clients from aspects of the process that could impair the future relationship with a new partner.