Breaking Up Without Breaking Down Planning And executing A Series Of Divestitures In The Midst Of A Global Economic Crisis
Source: Deloitte LLP
In the middle of the global economic crisis a large financial services firm had to sell off a large number of its assets and businesses to repay the bail-out loan from the government of U.S. This case study, discusses how Deloitte came to the rescue of this company and helped it design and execute a speedy and successful program for divestitures. The challenges faced by Deloitte were many owing to the speed, size and complexity of divestiture process especially in the face of a global economic crisis. The first part of this study discusses these challenges that complicated problems; so much so that the solution seemed almost impossible. But Deloitte worked alongside the company and went ahead with their separation program for all the divestitures in different phases. In the second section of the study, Deloitte explains how with its past experience and the M&A (Mergers and Acquisitions) methodology, each and every individual transaction were planned and executed consistently and efficiently. From creating the program agreement and the initial separation work plans to the final and full separation of each business unit, the entire program has been divided into four main phases. In the last section, the risk factors of the divestments have been discussed that could have lead to a failure of the company. But Deloitte's time tested approach enabled the company to manage and execute all of its divestitures successfully. It concludes with the keys to the success of this program.