In 2024, we expect adjusted EBITDA margin to be in the range of 8% to 9%. The larger puts and takes in this outlook year-over-year are the impact on EBITDA of the revenue drivers mentioned previously as well as the impact of our prior year nonrecurring benefit of a $17 million reversal of reserves relating to a favorable legal settlement as well as another $6 million of nonrecurring IT expense related to transitioning away from a legacy IT vendor. We expect to convert adjusted EBITDA to adjusted free cash flow in the range of 5% to 10%, which is inclusive of the remainder of the 2018 tax refund and also a portion of incremental collections related to implementation activity within the Transportation segment, but offset with other timing items that we pulled into the fourth quarter of 2023.
We expect CapEx to be approximately $110 million, and restructuring charges to be approximately $30 million. The latter being a substantial reduction as compared to 2023. In terms of our expectations for Q1, which will only have a small fragment of divestiture impact in it, we expect revenue to be down between 2% and 3%. Based on some discrete items we are anticipating in the first quarter, we expect the adjusted EBITDA margin to be below our full year guided range. That concludes our outlook for 2024. Let’s now talk about how that fits into a pro forma walk to our 2025 exit rate. Turning to Slide 12. The key message I want to leave you with is that we are still on track and expect to generate $1 billion of deployable capital through the end of 2025.
This is roughly 130% of our current market capitalization. With 2 divestitures announced and plan to close in the first half of 2024, generating approximately $495 million of after-tax proceeds, we have increased the range of total net proceeds from our divestiture program from $500 million to $700 million to a range of $600 million to $800 million. We have a handful of other transactions being marketed that we anticipate will close in the second half of 2024 and position us within this new range. This increase in net proceeds comes with a slight change in revenue mix for the remaining businesses. Segment 2025 exit growth rates remain intact as previously stated, and this will still be an organization generating in excess of $3 billion of revenue.
To date, we have only deployed $27 million of capital through our share repurchase program launched in Q2 2023, and this represents less than 3% of the total capital we expect to generate and deploy. Finally, in my section, let’s walk the 2024 outlook we saw on Slide 10 to an exit rate view of the business in 2025 and show you the hydraulics of how these divestitures roll off and the result into impacts on revenue, margin, capital expenditure and other metrics. Let’s turn now to Slide 13. Before we get into the details, I’ll just orient you on this slide. The first column is the 2024 outlook that we discussed on Slide 10. The next column depicts the impacts of the divestiture program, both announced and other anticipated transactions that we would expect to sign and close during 2024.
Following that, our assumptions and actions that we are planning for 2025 and the last column is the 2025 financial exit rate of the business to compare against what we previously outlined last March in our investor briefing. Starting with the divestiture column. Achieving the stated range of net proceeds will remove approximately $500 million of revenue from 2024. On pro forma, that would be a similar number for 2023. This includes approximately $300 million of revenue from the 2 transactions signed and announced, which comes off at an adjusted EBITDA margin of around 37%, again, similar for both years. The adjusted EBITDA margin of all of the planned divestitures, both signed and contemplated here is approximately 27%. This results in the divestiture program transacting at an aggregate multiple of approximately 7x adjusted EBITDA.
This adjusted EBITDA margin includes the currently outsized impact from the BenefitWallet transaction. Against a more normalized long-run interest rate environment of, say, 2.5%, the aggregate divestitures are transacting at a multiple of closer to 10x adjusted EBITDA. Looking at some of the other numbers on this page, our assumptions include approximately $50 million of annualized stranded costs that will be addressed after we close the transactions and that is included in the EBITDA margins of the divested businesses noted earlier. Timing of realization will depend on the nature and length of the transition service agreements we enter into with the respective buyers to support the successful transition of the assets. We expect the announced transactions to close in the first half of 2024, with the BenefitWallet assets transitioning in 3 tranches, beginning at the very end of the first quarter and concluding in the second quarter.
As noted in the second column of this slide, the after-tax proceeds for these announced transactions are approximately $495 million, and we have multiple parts to get into the range of net proceeds that I outlined on Slide 12. Our expectation for 2025 is that the remaining organization will begin to achieve revenue growth of between 2% and 4% as we progress towards the 2025 exit growth rate of 3% to 5%. Our current sales pipeline sits at close to $25 billion of total contract value, our highest ever. With continued focus on client retention, further enhanced in a more focused portfolio of assets, we are confident we can achieve this growth. We expect an adjusted EBITDA margin expansion of between 200 and 300 basis points will be achieved through a series of margin expansion levers, again, for which we have multiple parts.
Additionally, we are targeting a further $50 million of annualized cost savings from a combination of efficiencies across the organization as we continue to streamline and rightsize our central costs, facilities and technology footprints. Consistent with the themes we laid out in the investor briefing last March, we expect that the impact of our portfolio rationalization, combined with the planned 2025 actions will result in a more agile, focused and higher-growth company with less capital intensity. We believe we remain on a path to achieve this, and we’ll continue to provide updates along the journey as transactions get closer to closing and more transaction signed. That concludes my financial review of the Q4 and full year 2023 results and our update to the portfolio rationalization.
And I’ll hand it back to you, Cliff, for closing comments.
Clifford Skelton: Thank you, Steve. That concludes our Q4 and full year 2023 earnings call. Thank you very much, everyone, for listening to our review of 2023 and our outlook and plan for the future. We believe in the plan as I hope you do. Thanks, again, for being here, and here’s to a great 2024.
Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or block off the webcast at this time, and enjoy the rest of your day.
End of Q&A:
