Breaking Up Without Breaking Down
A large financial services company, facing a financial crisis, was looking to sell off multiple businesses in order to raise money and repay a bail-out loan from the U.S. government. It too suffered from the global credit crunch and was being pushed 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, which meant that everyone was selling and almost no one was buying. Also , the company's operating model and IT infrastructure increased the challenge as the company's IT infrastructure was a tangled web of interdependencies, with subsidiaries relying heavily on systems and services both from corporate and other subsidiaries. Creating a clean carve out in this rare environment was proving to be a huge challenge. Also the fact this has to be done for multiple divestitures added to the difficulty. Deloitte helped the company to design and execute a program for handling numerous divestitures in rapid succession. It worked closely with the company and helped it to develop and execute a separation program for all of the divestitures. With substantial experience in providing services in support of large and complex divestitures, and a time-tested M&A methodology, Deloitte's team provided a solid foundation for planning and executing each of the individual transactions consistently and effectively.