Divesting with style

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A multi-branded fashion retailer relied on perfectly tailored financial analysis and operational execution to sell two of its brands quickly for the most attractive price.

Client challenge

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.

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PwC’s solution

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.

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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%.

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The CFO came to think of the PwC team as his trusted independent deal advisors, the people who could provide a macro view of the divestment no matter how bogged down in the details he became.

Related business issues

Optimize deals
Transform human capital

Contact us

Curt  Moldenhauer

Curt Moldenhauer

Deals Partner, PwC US