Key takeaways
Host: Joel Schlachtenhaufen, principal, Deloitte Consulting LLP
Presenters: Jason Caulfield, partner, Deloitte LLP
Lucy Julian, partner, Deloitte LLP
Ezrick Wiggins, principal, Deloitte Consulting LLP
1.0 Overview CPE credit | Specialized Knowledge
Divestitures can be a tool to streamline businesses weighed down by non-core assets. However, companies may see lower shareholder returns if they don't stay focused on their cost base when contemplating a divestiture. Our research shows divestitures can fail to improve near-term profit margins. In fact, 51% of companies that divested assets in the last two decades experienced a profitability drop greater than 3.3 percentage points after the first year1, we’ll discuss:
- Possible impacts of divestitures on post-deal profitability
- Complexities introduced through Transitional Service Agreements
- Strategies to mitigate stranded costs
1 Capital IQ and Deloitte Analysis
Meet the speakers
Joel Schlachtenhaufen
Joel is a principal in the Merger & Acquisition Consultative Services practice with Deloitte Consulting LLP. He has more than 20 years of professional experience, including significant experience advising and working with senior executives to drive shareholder value through the full lifecycle of M&A transactions. He has successfully led efforts in M&A strategy, transaction advisory and integration, and divestiture planning and execution across multiple industries.
Jason Caulfield
Jason heads Value Creation Services and M&A Operations in Financial Advisory globally. He has more than 25 years of international experience supporting both corporate and private equity clients with complex M&A transactions. He helps identify and deliver operational improvements, restructurings and carve outs to deliver value in transactions. In Value Creation Services Jason supports corporate clients seeking to deploy Private Equity methods to drive operational improvements.
Ezrick Wiggins
Ezrick is a principal in Deloitte’s M&A and Restructuring practice. He has extensive experience in all stages of the M&A lifecycle, including integration strategy, divestiture planning, synergy capture, program management, and due diligence. Ezrick focuses on M&A IT strategy, technology strategy and implementation, program management, cost restructuring, technology transformation, enterprise architecture, and NextGen M&A capabilities. He also has experience in IT restructuring and separation management, including stranded cost management and TSA development.
