Divestitures operational readiness: PwC

Deal readiness to build value immediately and sustainably

Divestitures provide an important opportunity to achieve M&A’s goals for optimizing strategic assets through creating new sources of value, increasing evaluation and growing other areas of the business.

Divestitures require companies to engage with a layer of complexity. That’s why, at PwC, you’ll work with a specialist who understands the moves for your business – from data to industry experience, analysis to value capture, strategy to execution.

Whether you’re disentangling infrastructure and intellectual property or developing carve-out business operations, our team brings the experience of over 650 divestitures annually.

Regardless of whether you sell today or choose to prepare for the future, you’ll be deal ready and have the confidence to make the decisions that build value immediately and sustainably via operational readiness.

Where deep expertise meets objective insight

Our divestitures team brings together complex, disparate data and applies an objective and unbiased approach known for increasing deal speed to market by 30%. Combined with the deep experience of data scientists and industry subject matter experts, we’ll work with you from portfolio assessment through to post deal value creation to leave no stone unturned, no value left on the table

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.

The confidence that comes operational readiness

No deal is more important or complex than the divestiture of your business. Whether you’re looking to spin-off, carve-out a piece or sell your entire company, the right deal can establish your place leading the market for years to come. A divestiture can serve as a major catalyst to jump-start a transformation and can help unlock value with an accelerated time frame.

No one feels these high stakes more than you. It’s why you’re looking for confidence – not just that your divestiture goes well, but that you’re making the right decision to build value today, and long into the future.

We don’t think there’s a one-size-fits-all solution when it comes to divestitures. Instead, we adapt our proven tools and processes to custom fit your culture, people and strategic environment.