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1.

Justify (see future prospect)


a. If better future - continue
b. If future is not very good (listed player, industry growth rate, will you be able to
make ( if I can deploy my capital elsewhere, won’t b able to make good)
i. Ramp down (lease assets, or keep the assets and reduce variable cost) – can
you sale part of the assets and
ii. Can you use this for other market (from Thailand to other market)
iii. Can I use my capacity – plant is highly specialised, can you use these for
other business in the same geography and use R&D (because once you exit,
you won’t be able to come back)
iv. Exit:
1. Sale to strategic – valuation will be higher because they will have
synergy
2. Sale to financial - Valuation may or may not be very high (if he don’t
have any business in place, may also ask management to stay in the
market) – financial will have smooth transition
v. Keep the assets (if you to zero operation how much you will be able to use
and how much will be blocked) – use industry analysis and see if you should
wait. See what you want to sale and what you want to keep
vi.