Divestitures
Case Study
The Ducats Group delivers strategic and financial insight throughout the divestiture process, enabling both the parent and the new business to succeed.
Situation
A sponsor's $1B portfolio company with both manufacturing and distribution building products businesses needed separating in order to sell.
The decision to divest the $400M distribution division to create more value for shareholders brought significant system and infrastructure challenges.
Impact
The Ducats Group was brought in to lead the separation strategies and TSA planning.
A complex ongoing sales agreement between the buyer and seller required both agility and finesse.
Resolution
After TDG created the TSA and budgets, a separation plan was provided to the buyer, and successfully managed and executed.
Both the buyer and seller leveraged The Ducats Group to provide expert IT resources needed to gracefully and formally separate, while remaining core partners.
The Ducats Group now retains both companies as clients.
Areas of Scope
Technology
Operations
Due Diligence Service Tiers
Silver:
Compatibility Assessment and Cost Modeling
- Recommended for target organizations that are understood but medium risks perceived.
- Additional targeted assessments of applications, infrastructure, organization, governance, and budget with a focus on health and maturity of the capabilities of the IT organization.
- Additional deliverables include cost modeling, technology maturity assessments & organizational assessment.
Bronze:
Inventory and Documentation
- Recommended for target organizations that are well understood and minimal risk is perceived
- Collection and review of documentation to identify gaps and identify major risks
- Deliverables include a full document set with a baseline diligence report summarizing key findings & recommendations, and inventories of applications, infrastructure, organization, and governance
Gold:
Strategic Initiative Development
and Post Close Planning
- Recommended for target organizations that are poorly understood and significant risks perceived, or strategic planning and integration is required.
- Additional targeted assessments of applications, infrastructure, organization, governance, and budget with a focus on developing and scoping separation and integration
- Additional deliverables include IT organization recommendation, suggested investments, maturity scores, integration plan, and budget forecast
Contact us
Suite 800
Arlington, VA 22203