Direkt zum Inhalt springen

Divestments

Exploit the significant potential of an optimised sales process

When selling companies, real estate or infrastructure assets, the potential for value creation embedded in the actual design of a divestment process is often neglected. However, the implementation of game theory and industrial economics methodology motivates bidders to reveal their true willingness to pay and hence maximises competition intensity and sales proceeds. Furthermore, through transparent processes and clear and early communications, we are able to encourage bidders´ trust in the sales process and thereby secure the transaction and keep it on schedule.

We specifically optimise the following aspects:

  • Negotiation rules: As a seller you have significant negotiation power since you set the rules of a negotiation. These rules can take many different game theoretical forms, such as English or Dutch auctions, take-it-or-leave-it-offers, and these can be single- or multi-level – it all depends on the respective deal!
  • Comparability: All relevant transaction items, including subjective, non-monetary items, side conditions etc. will be monetised such that a quantitative auction based on a comparison price can be run at the end of the sales process.
  • Commitment: If you as a seller commit to the result of the sales process, bidders don’t need a reserve cushion for potential re-negotiations and will bid up to their true willingness to pay.
  • Communication: You have to clearly communicate the design of the sales process and your commitment to stick to the result of such a process – bidders have to trust in the process design in order to comply. Especially with corporate M&A-transactions, the timing of the disclosure of an intended sale can have a significant impact on the valuation of an asset and on the negotiation power of a seller.

 

Selling companies, property or capital assets often constitutes the end of a long, joint journey. Whether as a private equity fund, M&A department, industry holding, family office, project developer or as a M&A consultant – you are the one that sets the rules of your sales process and thus fully exploits the economic potential of your asset! Benefit from our long standing game theory and industrial economic expertise and optimise the return from your divestments. Talk to us!

further information

further information

The benefits of rational decision-making

Angewandte Spieltheorie / game theory

The benefit of game theory in conflict situations - and what that means for you.

 

Learn more

Your contact person

Marc Wallenstein
Partner

P: +49 89 200040-91
marc.wallenstein@remove-this.tws-partners.com