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Divestment and exit screen

The bank buys and never sells — this is the other half. Would we buy this today, at this price, knowing what we now know?

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Stage
03 Choose
Works at
Corporate
Maturity
Established SME → Large organisation
Time
One week

What it is

A test applied to a business unit or asset whose fit with the rest of the portfolio is in doubt, built on one deliberately uncomfortable question: knowing what you know now, would you buy this today, at this price. Most portfolios hold at least one thing that would fail that test and nobody has asked it directly.

The buy-it-today test
Set aside sunk cost and history entirely. If this unit did not exist in the portfolio and came up for sale tomorrow, would you buy it at a price reflecting its current performance.
Opportunity cost of keeping it
What the capital, management attention and balance sheet capacity it absorbs could do elsewhere. Keeping an underperformer is rarely free even when it is not losing money.
The exit route
Sale to a strategic or financial buyer, a carve-out that separates it cleanly, or an orderly wind-down. Each has a different timeline, cost and reputational profile, and the wrong route destroys value the analysis correctly identified.
Stranded cost
What cost remains in the rest of the business after the unit leaves — shared services, property, overhead — that will not disappear just because the unit did.
Buyer perspective
Why a plausible buyer would want this asset and what it would be worth to them specifically, which is often different from what it is worth inside the current portfolio.
The mistake people makeRunning the test on the unit that is easiest to sell rather than the one the answer actually points to, or letting sentiment about how the unit was acquired substitute for the buy-it-today answer.
What it’s forA business unit or asset's fit with the portfolio is in genuine question and the default answer of keeping it has not been tested.
What it’s not forThe unit's fit has just been reconfirmed by a portfolio review. Running this test every year on the same asset wears out the discipline it needs.

How you run it

  1. Ask the buy-it-today question directly, in the roomNot as a rhetorical opener — as the actual test. Set sunk cost and history aside and force a real answer.
  2. Price the opportunity cost of keeping itWhat the capital and management attention it absorbs could do elsewhere in the portfolio, stated as a number where possible.
  3. Identify the plausible buyer and what it is worth to themAn asset's value to a buyer with genuine synergy is often different from its value sitting inside a portfolio it does not fit.
  4. Choose the exit route deliberatelySale, carve-out or wind-down each have a different timeline, cost and reputational profile. The wrong route can destroy the value the analysis just found.
  5. Price the stranded cost of leavingWhat overhead, shared services or property remain after the unit exits and will not disappear with it. This is the number the board asks about second.

The prompt

Two ways to run it

Run this tool in your own Claude

The short prompt starts your partner against the library on your disk. The long one carries everything with it and needs nothing installed.

🔒 Prompt locked

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