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Divestment Practice

Financial institutions are facing more stringent capital holding requirements as regulators continue to address the balance sheet shortfalls highlighted following the financial crisis. Many European banks are now looking to bolster their capital either by issuing new equity or debt or by scaling down their portfolios. Given the challenges associated with raising new capital via issuing either equity or debt, scaling down portfolios through the divestment of assets remains a more attractive option. The key challenge for the financial institutions is to ensure maximum value is achieved for the divested assets whilst minimising costs.

Avantage Reply provides expert assistance to banks and other market participants in financial asset sale preparation and execution. The value to the client is delivered through a tried and tested efficient deal execution process with an emphasis on the provision of high quality analytics, documentation and operational support. This approach enables clients to (i) maximise the value of their assets; (ii) reduce transaction time and costs, and (iii) minimise risks and avoid failure.

Avantage Reply provides integrated end-to-end vendor assistance from deal preparation through to post execution asset migration as follows:

  • data tape preparation, collateral verification, document preparation, internal due diligence and asset performance analysis during the deal preparation stage;
  • planning and execution management, data room preparation and management, IM and SPA preparation during the deal execution stage; and
  • migration planning and execution, transitional service planning, service level agreements and tail management during the post execution stage.

Avantage Reply’s approach helps clients achieve the maximum value for their assets by tightly defining transaction scope, utilising accurate and reliable data, and ensuring a favourable deal structure. Both transaction time and costs are minimised through the provision of structured and relevant documentation to bidders, alongside maintaining a timely and accurate dialogue. Finally, post-signing execution risks are actively mitigated to successfully facilitate a migration of the assets.