Non-Core Doesn’t Mean No Value

Why Divesting Non-Core Divisions Can Unlock Value

Many mid-sized businesses and corporate groups carry legacy divisions that no longer align with their core strategy. These operations may still be profitable — but if they absorb leadership time, dilute focus, or fall outside long-term plans, it might be time to consider a divestment.

Selling a non-core division isn’t about giving up. It’s about focusing resources where they matter most — and unlocking value in the process. But before you start, it’s vital to assess the market. Who might want to buy your division? And what is it actually worth?

Step 1: Define What You're Selling

A clear definition of the division is essential. Buyers want clarity, not confusion. You’ll need to outline:

• What legal entity or assets are included (or carved out)

• What’s being sold: clients, contracts, staff, IP, brand, systems

• Any group dependencies (finance, HR, shared premises)

• Standalone financials for the last 3 years

Without this, it's hard for a buyer to assess the opportunity — and even harder for them to fund it.

Step 2: Identify Potential Buyers

The most likely buyers are usually:

• Competitors or peers who want market share

• Suppliers or customers who could vertically integrate

• Management teams interested in an MBO or spin-out

• Private investors or search funds looking for cash-generative businesses

• Strategic trade buyers from adjacent sectors

Each group will view the opportunity differently — and place different value on it.

Step 3: Assess Strategic Fit and Value

The right buyer may see more value than you do. Consider:

• Could this division offer scale or synergy to another business?

• Does it provide geographic reach, new sectors, or technical capability?

• Could a carve-out allow a leaner buyer to grow faster?

A buyer’s strategic rationale often drives a higher valuation than internal financials alone would suggest.

Step 4: Prepare the Division for Sale

A clean division will sell faster and for more. Before going to market:

• Prepare standalone accounts and forecasts

• Identify contracts, leases, and assets to be transferred

• Resolve any group dependencies or shared costs

• Put interim service agreements in place (if needed post-sale)

The goal is to make the business turnkey — ready for a new owner to take over with minimal disruption.

Step 5: Choose the Right Route to Market

Not all buyers come through public listings. You may consider:

• Confidential outreach to a shortlist of strategic buyers

• Appointing an M&A adviser to manage the process

• Exploring a limited MBO opportunity

• Partnering with a platform that specialises in non-core disposals

At Divestable.com, we provide specialist support for exactly these kinds of deals — discreet, strategic, and focused on value recovery.

Summary: Selling a Non-Core Division is a Strategic Move

Assessing the market properly helps you:

• Find the right buyer

• Justify value

• Reduce internal distraction

• Refocus your business around growth

It’s not just about what you’re getting rid of — it’s about what you’re making room for.

Ready to Explore Your Options?

If you’re considering divesting a non-core division or subsidiary, we’re here to help. Divestable.com supports business owners, boards, and corporate development teams to assess, prepare, and execute profitable exits for underutilised assets.

Contact Us today!