Divestitures operational readiness

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Act with agility to harness and sustain ongoing value

Companies must constantly optimize their portfolio of strategic assets to remain competitive. With advanced analytics and proactive portfolio analysis, divestitures are now an equally important partner to M&A for reinvesting funds, renewing operations, and repositioning a company for growth. 

However, the interconnectedness of businesses, products and capabilities within a company create operational challenges when attempting to move at the pace of strategic deal making.

How do you disentangle the underlying infrastructure, intellectual property, and shared commercial arrangements? How do you reorganize your remaining organization? How will the carve-out business operate as a standalone business? How do you engage key stakeholders?

At PwC, detail-oriented execution meets big thinking. Our dual perspective helps on-the-ground execution move in lockstep with your broader deal strategy – navigating through complexity to clearly see a path to results.

  

A sixth sense for opportunity

Some say practice makes perfect – and we agree. Our global deals experience across industries has made finding and moving towards new sources of value second nature to us – even if it requires altering the course of a deal in progress. Key components of our services include:

  • Target operating model design: Model how the seller and divested business will operate and implement optimization plans post-separation.
  • Transition cost analysis: Assess stand-alone, one-time, and stranded costs and provide scenarios that increase the value of the carve-out business, and reduce transaction and restructuring costs.
  • Functional separation: Provide functional expertise to enable enterprise-wide tactical execution of transition requirements and long-term separation plans.
  • Parent optimization: Evaluate the impact of the divestiture on the seller’s remaining businesses and competitive capabilities.
  • Divestiture Management Office (DMO): Coordinate enterprise-wide divestiture efforts, manage dependencies and resolve issues to support the deal team and executive management with prioritizing activities and balancing resources across competing initiatives.  
  • Transition Service Agreements (TSAs): Identify transition services required by either the seller or carve-out business after close. Understand requirements, terms, costs, and plans for delivery under different exit scenarios.
  • Day One Readiness: Develop plans to achieve a seamless transaction close and establish TSAs to mitigate operational disruption.

Arming your team for success

The impact of a divestiture lasts long after the transaction ends. Whether it’s creating ongoing value from the transaction you just completed or identifying what’s next for your core business, we stay in tune with your strategy and the economic landscape to help build on your success and propel you towards your strategic goals.

We don’t think there’s a one-size-fits-all solution when it comes to divestitures. That’s why we adapt our proprietary approach to  custom fit our teams and how we work so they match your culture, people and strategic needs. This way, our people help bolster your team’s efforts through on-the-ground support that keeps you one step ahead. 

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“Overall, the deals [three divestitures] represented a significant business success for Intuit, letting the company tighten its focus on its core business while giving the target businesses the chance to thrive under new ownership.”

David Cole, Intuit’s VP and Head of Integration

Contact us

Barrett Shipman

Principal, PwC US

Paul Hollinger

Principal, PwC US

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