Managed Exit
Advising and implementing a multi-disciplinary, comprehensive exit solution for underperforming and non-core businesses.
Even strong businesses can face the challenge of how to close or exit underperforming operations or divest from illiquid assets. We free up management time and capital for clients through a combination of strategy development, detailed planning and hands-on implementation.
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What We Do
At Teneo, we’ve developed comprehensive solutions to help businesses evaluate their options when contemplating an exit strategy.
Our multidisciplinary Managed Exit service, led by our financial advisory team, advises corporates on fixing, selling, or closing underperforming and/or non-core areas of their business.
We work alongside the business throughout the process, from developing an initial strategy through to detailed planning and hands-on implementation of the exit. The ultimate goal is to free up valuable capital and management time.
Our team’s multi-faceted skillset and depth of experience offers our clients a level of support that is unmatched by any other advisory firm in the world. Teneo’s Restructuring experts also tap into the expertise provided by our other business services such as strategic and communications advisory, management consulting and risk advisory to offer a comprehensive integrated solution for our clients.
Our Approach
Exiting a non-core, loss-making, or underperforming business requires dedicated, on-site specialists to plan and project manage, especially as many businesses do not have the experience or bandwidth to manage the process in-house.
Working with advisers makes commercial sense and can bring significant implementation support. For some businesses, this is a defining moment for the future of the enterprise, one that can release tangible benefits to the bottom line.
Key Components
Case Studies
An exit from a non-core operation, particularly across multiple locations, can be complex. That’s why our team includes experienced and knowledgeable subject-matter advisers from across the breadth of the Teneo organization to help you evaluate, construct, and deliver a comprehensive and custom-made exit program.
Automotive
Business problem
An automotive manufacturer needed detailed and tailored guidance through the operational wind-down of domestic and overseas manufacturing activities.
Teneo solution
Teneo’s Managed Exit service advised the overseas group on its exit strategy, project managing from initial feasibility assessment through to formal announcement of the exit. The team drew on Teneo’s breadth of capabilities, including restructuring, employee relations, M&A/valuations, domestic and international tax, public relations, and crisis planning.
Key takeaways
Closure announcements are often high profile so a carefully coordinated stakeholder communications plan is essential, especially in the context of a global organisation. The Managed Exit team used their international experience and the breadth and scale of Teneo to support the client with one of their most challenging business problems.
Technology
Business problem
A global technology company wanted support with considering options for unprofitable divisions in the UK and Belgium.
Teneo solution
We gathered a multi-disciplinary team to perform an options analysis for the unprofitable divisions, including partial divestiture and wind-down considering financial, reputational and operational risks. Subsequently we supported with project managing the implementation of a closure planning and partial divestiture exercise.
Key takeaways
The closure planning exercise identified potentially significant financial and commercial risks and was essential to the process to not only have a plan B but also support decision making regarding the sale process. A partial divestiture was achieved with the residual business units wound-down utilising the plans we developed.
Industrial products
Business problem
A family owned manufacturing business in the UK had a loss-making operation that was deemed to be noncore.
The client wanted support in reviewing options, developing closure plans and with the subsequent implementation of a solvent closure.
Teneo solution
Working with management, Teneo’s Managed Exit team conducted a rapid diagnostic to analyse potential exit options and any key issues to be addressed. The team was then engaged to project manage and implement the wind-down and closure of a UK manufacturing site, including co-ordination of employee consultation and stakeholder communication.
Key takeaways
The creation of a detailed PMO to prepare plans for management to implement was critical. The team worked alongside the client during the implementation phase and closely monitored progress to improve accountability.
