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Case study

A digital transformation leader gains strategic insights for Day-One Readiness

Client: Leader in digital technologies

Our Role: We leveraged PwC’s Divestiture Accelerator, which provided a single platform to aggregate relevant data and develop automated, replicable processes, for the carve-out.

Industry: Technology, Media and Telecommunications

Services: Forensics, CMAAS, M&A tax, Divestitures

Client Challenge:

A complex history creates new challenges for the future

As a leader in digital technologies, our client was no stranger to change. A newly formed company itself, our client was managing both integration - with laser sharp focus on its core business - and plans for divestiture of a business unit not aligned with its core objectives. Stand-up needs for the spin-off were extremely complex, given the company’s history and the sheer volume of data to be processed and analyzed. What’s more, our client hoped to file with the SEC within five months from the start of the carve-out effort and to close the deal within seven-to-eight months. An aggressive timeline for any organization, this was a particularly ambitious goal for a company that was itself less than a year old.

"Building strong relationships is as important as collecting the right data to achieve business objectives. We appreciated the opportunity to work directly with our client across a range of functions and roles and to work together to meet the goals not just for Day-One Readiness but for Post-Day-One Readiness."

Thomas P. Martin, PwC CMASS Deals Partner

Approach:

A holistic approach helps launch a spin-off with head-spinning speed

A team of professionals from across PwC had worked closely with the company’s CFO and Controller through the merger process that led to its creation and turned to us for advice about the spin-off it now planned. Given the need for speed and the complexity of the financial reporting issues, we quickly assembled a team with deep technology industry expertise from our tax, advisory, risk assurance, valuation and related practices to bring a holistic approach to the divestiture project.

The team leveraged PwC’s Divestiture Accelerator, which provided a single platform to aggregate relevant data and develop automated, replicable processes. Next, we worked seamlessly to coordinate valuation and preparation of financial statements and forms and the newly merged company’s first filings. In anticipation of the operational changes a divestiture would likely require, our client sought help, as well, to assess staffing needs related to financial operations and reporting going forward.

Impact:

Transparency and consistency from 1 trillion bytes of data

The divestiture involved the processing and analysis of 1 terabyte (1T) - 1,000,000,000 bytes of data - gathered from more than 700 source files across 10 reporting periods, providing consistent, transparent data for Day-One Readiness, as well as future reporting needs. A “collect once, use many” approach to gathering and analyzing the data helped our client gain insight to support strategic and operational plans going forward, including staffing plans around reporting. Completing the carve-out quickly allowed the company to turn its full attention to its core business. It was time to focus on the next chapter in the company’s dynamic, fast-evolving history.

To learn more about how a holistic approach to carve-out opportunities can help you meet business objectives, visit Divestitures page.

Contact us

Paul Gaynor

Global & US Alliances and Technology Consulting Leader, PwC US

Thomas Martin

Partner, PwC US