Divestitures aren’t just mergers in reverse.
Whether you are contemplating your first divestiture, consider yourself a seasoned veteran of carve-outs, or are a functional leader working through complex separation challenges, Deloitte can support with leading divestiture experience, methodology and insights.
Your Separation challenges
Companies often undertake divestitures to generate capital for future growth opportunities or simply to restructure by shedding non-core business units. These transactions require specific capabilities that may not be readily available in-house. Yet, without the required skills and knowledge, the divesting entity may suffer under the required efforts and the parent may sacrifice valuable gains or in fact incur deep losses, such as from badly constructed Transition Service Agreements (TSAs), stranded costs or ineffective solutions.
How Deloitte can help
Deloitte’s dedicated M&A Separation Advisory practice offers the knowledge, proven methodology, experience, and execution-oriented skills gained over the course of hundreds of transactions.
Deloitte brings a wealth of experience to each separation, and an outside-in perspective to the divestiture process. We support sellers to manage execution risks, maximize deal value, minimize transition service agreements (TSAs), and address potential stranded costs.
Our Swiss practice is part of a large cross-border team ensuring that we are locally present, where you are.
Our approach is hands-on and pragmatic, based on many years working alongside our clients
to deliver their divestitures:
- Defining the scope of the separation perimeter and the complexity of the proposed divestiture
- Selecting and/or preparing the Separation Director
- Setting up the separation programme, governance and stakeholder management
- Working alongside the M&A deal teams to prepare the entities for an operational carve out
- Preparing a Seller information document and/or operational handbook for the Seller
- Developing detailed separation plans and supporting the development of solutions and resolution of issues
- Developing TSA schedules and working with the functional owners to operationalise the services, as well as setting up governance and monitoring approach
- Advising Separation Directors and key project managers
- Planning and managing the detailed separation with functional experts and central coordination, and ensuring an issue free Day 1
- Mobilising and co-ordinating the project teams around a well-structured and managed separation programme; and
- Managing people issues, change management and separation communication
- Ensuring clarity of scope and target state vision
- Enhancing discipline and control through content-rich, knowledge-based programme management
- Reducing risks and issues, by staying ahead of the issues and deep experience to support swift resolution
- Reducing disruption by focusing on people and change management
- Retaining customers and employees through rigorous execution of customized playbooks; and
- Reducing stranded costs by confirming SG&A details don’t fall between the cracks