In today’s dynamic corporate landscape, strategic divestitures are becoming essential tools for unlocking shareholder value, optimizing corporate portfolios, and sharpening competitive advantage. Whether a company is refocusing on core competencies, realigning resources toward high-growth areas, or responding to market forces, implementing robust divestiture advisory strategies can significantly influence the final exit multiple achieved. Leveraging expert divestiture consulting early in the planning and execution process ensures that companies are positioned to extract premium valuations in complex markets.
Divestitures represented a substantial portion of global M&A activity in 2025, especially as organizations sought to balance portfolios in a fragmented economic climate. According to industry analyses, divestiture transactions accounted for more than one quarter of total M&A activity in Q3 2025, highlighting the increasing reliance on strategic carve-outs for corporate transformation. With median global valuation multiples trending around 10 point eight times EBITDA in mid-2025, down from peak levels seen in late 2024, sellers face pressure to maximize every leverage point in negotiations. Against this backdrop, effective divestiture advisory strategies are more critical than ever for maximizing exit returns and securing optimal multiples.
Understanding Exit Multiples and Market Context
An exit multiple is a key valuation metric in both strategic and financial transactions, usually expressed as a multiple of earnings before interest, tax, depreciation, and amortisation (EBITDA). Achieving a higher multiple at exit directly translates into increased deal value for sellers. Despite challenging macroeconomic conditions, total global M&A value climbed significantly in 2025 to nearly one trillion US dollars in the first half of the year, driven by a surge in megadeals and private equity activity. Notably, divestiture activity itself has shown resilience; for example, larger transactions (those exceeding one billion US dollars) accounted for increasing proportions of divestiture deal value, suggesting that premium assets with strategic appeal can still command strong pricing.
However, average multiples have rebounded unevenly across sectors and regions. While US multiples have shown modest improvement, Europe and Asia Pacific markets experienced downward pressures in 2025. This divergence underscores the importance of tailored advisory strategies that account for regional market dynamics and sector-specific valuation drivers.
Core Divestiture Advisory Strategies to Maximise Exit Multiples
The path to capturing maximum value requires more than simply placing an asset on the market. High-impact divestiture consulting encompasses strategic preparation, deep market insight, and meticulous execution. The following strategies form the foundation of successful divestiture advisory engagements:
1. Early and Rigorous Strategic Planning
One of the most impactful ways to improve exit multiples is to start planning well before the decision to divest is made public. Companies that begin strategic planning early are better able to address operational inefficiencies, consolidate resources, and present a clean narrative to potential buyers. This involves detailed scenario modelling to evaluate how various market conditions might influence deal structures and pricing. Incorporating robust forecasting models helps stakeholders anticipate buyer concerns, allowing management teams to proactively mitigate valuation risks.
2. Segmenting and Positioning for Strategic Buyers
Buyers pay premiums for assets that align clearly with their strategic objectives. Successful divestiture advisory strategies emphasize segmenting the business in ways that make it attractive to high-value acquirors. For instance, carve-outs that highlight intellectual property, differentiated technology, or strong recurring revenue streams can command higher multiples compared to commoditised or cyclical businesses. Presenting compelling, data-driven growth narratives around these assets helps differentiate them in competitive auctions.
3. Strengthening Operational and Financial Performance
Optimising the asset’s performance prior to sale is critical. Buyers closely examine EBITDA trends, revenue quality, customer retention rates, and cost structures. Whether through selective cost-reduction, improved working capital management, or technology investments to boost productivity, enhancing the financial health of the divestiture target can materially improve pricing outcomes. For example, industry data in Q1 2025 showed average EBITDA multiples rising for sectors with sustained revenue growth and margin expansion, reinforcing the value of operational improvements.
4. Enhancing Corporate Narrative Through ESG and Digital Readiness
Today’s buyers often integrate environmental, social, and governance (ESG) criteria and digital transformation potential into valuation assessments. Demonstrating robust ESG frameworks or investment in key digital capabilities can unlock additional buyer interest and premium pricing. Advisory teams should prepare comprehensive disclosures and prospectuses that highlight these strengths, documenting both current achievements and future potential.
5. Comprehensive Target Marketing and Buyer Outreach
Maximising the competitive tension among potential buyers is another core advisory responsibility. Conducting broad yet strategic buyer outreach, including corporate strategics, private equity sponsors, and passive financial investors, increases the likelihood of securing multiple offers. Formal auction processes with clearly defined timelines and confidentiality protections often result in stronger negotiating leverage for the seller, driving up exit multiples.
6. Structured Deal Terms to Capture Upside
Exit multiples can be enhanced through thoughtful deal structuring that balances upfront consideration with contingent or performance-based components, such as earn-outs or milestone bonuses. While buyers may shy away from aggressive upfront pricing, incorporating well-structured contingent value rights can help sellers capture upside while mitigating buyer concerns around risk.
Quantitative Impact and Emerging Trends
As shown in 2025, median global M&A multiples hovered at around 10 point eight times EBITDA, reflecting cautious valuation sentiment influenced by macroeconomic uncertainties. Businesses that engaged in disciplined advisory processes and strengthened operational fundamentals were more likely to achieve or exceed market multiples. Notably, divestiture transactions comprised approximately 25 point nine percent of total M&A activity in certain markets, indicating growing investor appetite for strategic carve-outs.
Furthermore, broader market trends point toward continued momentum in 2026, with some forecasts projecting overall global M&A value to reach as high as four point five trillion US dollars. This optimistic outlook, backed by strong private equity dry powder exceeding one trillion US dollars, underscores the importance of having sophisticated advisory strategies in place to capitalise on heightened buyer demand.
Achieving Success With Professional Divestiture Consulting
The contribution of experienced divestiture consulting cannot be overstated. A professional advisor offers nuanced market insight, access to extensive buyer networks, and the analytical tools necessary to optimise deal positioning. Such expertise enables sellers to navigate competitive tension, craft compelling narratives, and ultimately negotiate superior terms and multiples that reflect intrinsic value rather than market noise. Recent market data suggests that divestiture value creation is directly linked to the quality of advisory support and strategic preparation, with well-executed carve-outs often outperforming broader market benchmarks.
In conclusion, maximising exit multiples in a rapidly evolving M&A environment requires an integrated approach built on early planning, rigorous financial and operational enhancement, strategic positioning, and disciplined execution. By partnering with seasoned divestiture advisors and applying best-in-class analytical methods, companies can unlock meaningful value, attract a diverse pool of buyers, and secure the strongest possible outcomes for their stakeholders. With robust demand predicted for 2026 and beyond, now is the time for businesses to refine their divestiture advisory strategies and position assets for peak valuation success.
Finance Advisory 