Eversheds has produced a report based on surveys of senior lawyers and executives in 34 countries around the world. Over four in ten (41%) of the 150 respondents say that they are equally focussed on divestments and acquisitions. In its 'Streamlining for Success' report, Eversheds says that experienced sellers 'are now spending significantly more time in the early stages of the deal, with a noticeable shift from a ‘sign and manage’ process to a ‘manage and sign’ approach, which involves starting deal preparation earlier, creating detailed separation plans and more vendor due diligence.'

Tensions

But, 72% of respondents report experiencing 'tensions or significant differences with their business colleagues when planning a divestment'. A common problem cited by this group is that 'divestments were more complicated, yet did not receive the same attention from the business as acquisitions'. 

Closer working relationships

Robin Johnson, Eversheds partner, said: 'Deal teams must have the opportunity to prepare their businesses for the challenges they face on complicated divestments. This requires a much closer working relationship between the lawyers negotiating deal terms and regulatory clearances, and the operations team executing the commercial transaction and separation plans - a point that came through very clearly from the businesses involved in the study.' Source: Business Wire