From my recent experience working with middle-market companies, I would have to agree with this article that states that there were an increasing number of divestitures by multinational corporations (MNC) in 2009. In particular, my work in the specialty chemical industry showed me that the economic downturn has forced many MNC’s to reassess their portfolios. This reassessment includes divesting any businesses that are not aligned with future strategic goals. Divestitures will also allow these MNC’s to clean up their balance sheets – in other words, “free up cash.” The reassessment of these portfolios has generated tremendous opportunity for middle market companies that are strongly positioned financially. Look for this divestiture trend to continue in 2010.
More Divestitures for 2010?
- February 10, 2010
- By Capstone under M&A and External Growth
- Bob Kwaja, Capstone, divestiture, External Growth, Integration, M&A, M&A News, mergers, Mergers and Acquisitions, specialty chemical
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