A perfect split

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How do you break one company into two thriving businesses successfully? By formulating smart operating models and focusing on costs.

Client challenge

To spin off a successful division and create two separate companies by:

  • Addressing the challenges of splitting highly integrated legal entities and corporate infrastructures.
  • Preparing for the potentially high costs of separation.
  • Understanding how disruptive operational changes could affect the organization.

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PwC’s solution

Plan and execute a successful separation by:

  • Applying the Fit for Growth* approach to analyze and target specific areas for new
    post-split efficiencies.
  • Collaborating with company leaders to apply outsourcing judiciously as a tactic to split integrated departments.
  • Managing change through effective communication to retain talent and get managerial ownership.

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Impact on client’s business

  • The company achieved $150 million in savings directly related to the divestiture.
  • It predicted an additional $150 million in post-split savings thanks to new post-separation opportunities.
  • Several years post-separation, both companies’ value, growth, and earnings are exceeding expectations.

 

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"…organizational efficiency resulted in almost $300 million in total cost savings…"

Contact us

Vinay Couto

PwC's Strategy&, Principal, PwC US