Client case studies | Carving out a global business

A private equity firm sought guidance as it consolidated three divisions of a Fortune 50 powerhouse into a new standalone firm.

A large Private Equity (PE) firm initiated the process of acquiring three unified brands from a global Fortune 50 Company at an estimated value of $3 billion. The acquired business was complex, operating three distinct brands across its global operation in North America, Europe, Asia, and the Middle East. The PE firm wanted to move fast to close the transaction and achieve the most desirable financing. Doing that would require a rapid execution of Day One plans. To achieve success, it would need to team with a trusted advisor to help properly value the asset, establish a transition infrastructure to close the deal in a timely manner, and execute the multi-functional separation plan over a period of just nine to 12 months.

Our firm established a multi-disciplinary team to evaluate the pre-signing diligence areas of the deal. With the Operations function, we separated entangled vendor contracts and maintained the continuity of 150 contracts critical for the new company. We also advised the Engineering, Environmental Health & Safety, Facilities and Lean/Quality teams to help maintain operational continuity. Working with HR, we supported payroll migration for approximately 1,500 employees and facilitated communications for 14 functional areas to help smooth the transition.

We also supported the IT team’s efforts to renegotiate agreements for 38 IT applications and contracts and established a governance program to administer and manage the delivery of IT, Finance, Operations, HR, and Payroll during the Transition Services Agreement.

In addition to a seamless transition from Day One to long-term separation, The client received the guidance and roadmap it needed to establish standalone operations within 12 months of the close of the deal so it could transition back to “business as usual” and focus on creating value as an independent organization.


Click here to download and save the case study.