What can be done with ailing subsidiaries or parts of a business? Changes in the market situation or reduced margins or low equity investment are making it more and more important for businesses to optimise allocation of management and capital resources across the whole group. PwC has developed its own distinctive approach.
If parts of a business are approaching a crisis, management needs to ask what will happen with the business or subsidiaries in question - should they be sold, closed or restructured? And should they be part of an insolvency proceeding or not?
There are various options for a parent company to separate itself from ailing parts of the business. The costs and risks of all options should be investigated carefully before choosing the best solution and ensuring that it is implemented properly.
PwC supports businesses in identifying parts of businesses that are at risk of crises and assists them in assessing potential options for action, identifying the necessary resources and in the implementation.
One approach is the "optimised exit service" (OES). There are a number of stages to this approach and it is necessary that the analyses and processes are aligned for it to be successful.
There's no one-size-fits-all solution: you need an individual approach
That is the only way to guarantee maximum shareholder value and early free-up of resources. Each business's needs are complex and distinctive. A one-size-fits-all approach simply won't work. And that's exactly why our optimised exit service tailors its solutions to each business.
Using innovative and effective processes, PwC's experts can help turn around a crisis caused by an ailing subsidiary or part of the business.