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                                 You may not be getting top price for your divestitures

Occasionally, when I am talking about divestitures, that old Neil Sedaka song, Breaking Up is Hard to Do, echoes in the back of my mind. (I realize I am dating myself here, and the song is really before my time, but still a classic.) The song talks about trying to stay together, but when it comes to divestitures, it usually happens for the right reasons, and as a company you really want it to happen as profitably as possible.

So what is going to get in the way of that top price? Risk to your buyers! Risk that onboarding into the new owner will take too long. Risk of the divestiture underperforming. Risk of costly IT transitions. Risk that low visibility into Finance and Operations may be hiding something.

But if your divestiture is running SAP S/4HANA Cloud, SAP’s Intelligent ERP solution, all these risks are minimized.

A cloud solution leads to quick divestiture independence. There is no corporate system that needs to be pulled out by the roots, and replaced. And there is no up-front investment in IT infrastructure, which minimizes cost and time to transition.

Intelligent ERP gives the divestiture more value and ensures continued success. Your divestiture is already running SAP best practices. It has a flexible digital platform to help monetize the digital economy. Machine Learning optimizes and automates processes. Digital assistants increase employee productivity. Embedded analytics enable faster insight-to-action and predictive capabilities accelerate problem solving. With all these capabilities, this divestiture is set up for success, and your buyer will pay top dollar for this built-in value.

SAP S/4HANA Cloud’s architecture reduces IT costs and speeds off boarding. A best-of-breed approach, off-the shelf integration into SAP’s LOB solutions, and an extensive set of open API’s, lets your new buyers easily decide what functionality stays, determine what functionality is not needed and can easily removed, and then quickly integrate corporate systems into the divestiture.  They get flexibility, and they are willing to pay for it.

Corporate governance and real-time visibility facilitates valuation and provides a clear picture. SAP S/4HANA Cloud provides real-time visibility into ongoing profitability and cash flow needs, which makes it easier to value the business. SAP best practices ensure that both Finance and Operations are operating at top performance, with no surprises. And with SAP leading localization capabilities, your buyer can be assured that the operation is complying with all local tax, regulations, and practices.

 

 

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