To divest two of three fashion brands in order to focus on the growth of its flagship brand
- The company was unsure of the real market value of its component brands.
- Its highly integrated operations would have to be separated carefully including right-sizing its supply chain for significantly less volume.
- It needed to create crystal clear and thorough financial data to maximize value of the transactions and expedite the sale process.
Create a divesture plan that addresses the critical financial and operational issues needed to optimize the deals by:
- Conducting due diligence across finance, operations, HR, IT, valuation, and tax.
- Developing stand-alone financial data that enable potential buyers to efficiently complete due diligence and submit competitive bids.
- Developing a cost-effective distribution and logistics strategy to fit the remaining business.
Impact on client’s business
- The company successfully divested its two brands separately within two months of each other to the first serious buyers.
- It collected close to $500 million to invest in the growth of its remaining flagship brand.
- Its stock price jumped 125%.