In our latest Global Corporate Divestiture Survey of mergers and acquisitions (M&A) and restructuring leaders, we explore not only the latest trends in divestiture, but also its changing role in corporate strategy.

Except for a pandemic-related spike in 2021, where total global divestiture value topped US$1 trillion, the volume and value of divestitures and spinoffs has remained largely stable in recent history. The outlier year, 2021, found many organizations divesting non-core assets to free up cash after the pandemic slowed and shuttered so much business activity. The next year, 2022, brought just as rapid a cool-off to pre-pandemic levels, in part because ready buyers had been accommodated, and in 2023, volume and value declined even further.

With the most significant market disruption seemingly behind us, are organizations focussing on divestiture-readiness for 2024 and beyond? The latest market data suggests that there is a positive outlook for renewed M&A activity, including divestitures, as this survey indicated that dealmaking is likely to rebound, with fewer than 2 percent of respondents saying their organizations plan no sell-side activity, and almost 80% anticipate three or more divestitures in the next year and a half. It is likely that sellers remember the heightened activity of 2021 and have an appetite to make divestitures a more regular part of their plans.

• Except for a COVID-19 pandemic-related spike in 2021, the volume and value of divestitures and spinoffs has remained largely stable in recent history. Over the past six years, they have made up between 13% and 17% of global M&A volume and between 16% and 22% of value. The Americas accounted for most of that value, while Europe saw the second most, followed by the Asia-Pacific (APAC) region.
• Our divestiture survey respondents indicate, especially compared to 2022 Global Divestiture Survey findings, they are realizing higher-than-expected transaction proceeds, are closing transactions more quickly than expected, and are more likely to overestimate separation costs. This year’s survey respondents are three times more likely than before to report completing divestitures faster than expected, and they are seeing similar improvement in achieving stakeholder alignment for diligence and presale preparation.
• Based on our 2024 survey, 60% of our divestiture survey respondents were strategically evaluating individual portfolio businesses for divestiture potential at least twice a year, a slight increase from 55% in our 2022 survey.

Read the full report here: 2024 Global Divestiture Survey | Deloitte