Breaking Up Without Breaking Down: Planning And Executing A Series Of Divestitures In The Midst Of A Global Economic Crisis
A large financial services company needed to sell off multiple businesses in order to raise money and repay a bail-out loan from the U.S. government. With Deloitte's help, the company was able to design and execute a program for handling numerous divestitures in rapid succession. Each resulted in an issue free Day One and smooth separation from all transition services agreements. The global credit crunch had pushed the company to the point it had no choice but to divest a wide array of businesses and assets. The size, speed and complexity of the divestiture effort made it extremely challenging. So did the fact that it was occurring in the midst of a global financial crisis, when everyone was selling and almost no one was buying. Deloitte worked side-by-side with the company to help them in their efforts to develop and execute a separation program for all of the divestitures. Deloitte team had substantial experience in providing services in support of large and complex divestitures, and time-tested M&A methodology provided a solid foundation for planning and executing each of the individual. The unprecedented pace, scope and complexity of the company's divestitures created a significant risk of failure. It also increased the risk that stranded costs and resources would continue to burden the companies after the divestitures were complete.