Date Added: May 2010
Unilever is among the largest consumer products companies across the world. With an intention of focusing on its core business activities in Latin America that were exhibiting exceptional growth and profitability, Unilever decided to sell off two of its shared service centers in Brazil and Chile. However, Unilever recognized that selling off the centers presented some serious challenges since the centers had deep roots in Unilever's organization in Latin America, which meant that a poorly executed transition could result in significant disruption. Also, the transition would have to occur quickly to achieve the greatest benefit. Deloitte helped Unilever in its efforts to finalize the contract at an unprecedented pace which facilitated immediate cash benefits and long-term cost reductions. The company was seeking the best possible upfront price for its assets, and was intended to arrange a seven-year outsourcing deal for the buyer to provide ongoing financial systems support to minimize disruption to their business operations. Deloitte were involved in four stages of this project: development of the business case, management of the due diligence process and the data room, design of the governance model to support management of the ongoing services contract and finalization of the upfront sale agreement and ongoing services contract. The company was also assisted by Deloitte in a significant way while planning on their commercial position in advance of their contractual negotiations.