How to Identify Potential Buyers for Non-Core Disposals
- Tony Vaughan
- Sep 4
- 2 min read
When a company decides to divest a non-core division, subsidiary, or business unit, the challenge is often less about deciding to sell — and more about identifying the right buyer. The right acquirer can unlock value, ensure continuity, and deliver a clean break. The wrong one can slow the process, depress value, or create ongoing risks.
So how do you identify the best potential buyers for a non-core disposal?
Start with Strategic Buyers
Strategic buyers are businesses already operating in your sector or adjacent industries. They are motivated by synergies — expanding product lines, entering new markets, or strengthening supply chains. These buyers often pay a premium if the disposal offers clear competitive advantage.
Tip: Map your division’s strengths and look for competitors or partners who could leverage them.
Consider Financial Buyers
Private equity firms, family offices, and independent investors often look for standalone businesses with growth potential. If your non-core unit has a strong management team and recurring revenue, it may be attractive to this type of buyer. Financial buyers may not pay the same synergy premium as a trade acquirer, but they can provide speed and certainty.
Look Internally: Management and Employees
In some cases, management buyouts (MBOs) or employee ownership trusts (EOTs) can provide a solution. These options allow continuity while ensuring the business is run by people who know it best. While valuations may differ from external buyers, the cultural fit can be stronger and the process smoother.
Explore International Interest
Non-core divisions can be particularly appealing to overseas buyers looking for a UK footprint. Identifying international acquirers requires research and a global network, but it can open the door to higher valuations and wider opportunities.
Build a Targeted Buyer List
A well-prepared divestment process begins with research. This includes:
Reviewing competitors, suppliers, and customers for natural fit
Analysing M&A activity in your sector
Engaging advisers with access to private databases and networks
Considering off-market approaches to discreetly test appetite
Balancing Value and Fit
While price is critical, not every high offer is the right one. The ideal buyer will bring certainty of completion, financial stability, and alignment with the ongoing needs of staff, customers, and suppliers.
A non-core disposal can free up capital and management time, but success depends on identifying the right buyer pool from the outset. With the right preparation and research, sellers can maximise value while ensuring a smooth transition.
At Divestable.com, we specialise in helping businesses identify and engage the right buyers for non-core disposals — delivering clean, strategic exits with confidence.
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