When a division CEO of a long-standing client in the pulp and paper industry contacted us to assess the viability of one of its business units, we pioneered what became an SDG-proprietary Targeted Divestiture process.

After a three-month business assessment, including 55 in-person customer interviews and analysis of product positioning and market perception, the client determined the best course of action for shareholders would be to divest the business unit. The client then asked us to help prepare the asset for sale and locate the right buyer.

Using our Targeted Divestiture process, SDG identified a subset of potential buyers who had a strategic need for the business. In presenting the opportunity to those targeted buyers, we demonstrated both financially and strategically how the addition of the business unit would create value for the potential buyer.

As a result, SDG brought a buyer to the table with an offer of more than 10 times the client's internal NPV for keeping the business unit. The buyer had both a strategic need and an optimal fit, so it could create significantly more value from the business unit than our client could in retaining the asset.