Companies thrive by expanding, not shrinking. Yet shedding assets can create substantial benefits. The crucial factor: handling divestitures adeptly. The Ducats Group delivers strategic and financial insight throughout the divestiture process, enabling both the parent and the new business to succeed.

Case Study

Overview

The seller, a private equity fund and family office, brought The Ducats Group in to spin out the $500M Distribution business from a Manufacturer to a Publicly Traded Company. The legacy ERP environment and systems made for a difficult separation scenario. A complex sales agreement with a continued relationship made it important for a smooth and mutual transition.

Approach

Facing off against a Big 4 firm during Due Diligence and TSA Development, TDG provided the separation strategies before TSA finalization. In order to do this, a workshop with the seller IT team to conduct a deep dive into the data separation and system carve out was necessary. The Buyer was so impressed with the separation strategies and guiding principles, they in turn had TDG provide all PMO and migration technology services for the buy-side integration during the TSA period.

Value Delivered

At 40% lower costs than Big 4, The Ducats Group provided more seasoned senior experts for planning and execution. TDG delivered all separation plans and conducted migration activity on behalf of both the Buyer and Seller, which in total netted a 50% cost savings. The companies were able to exit the TSA on time (5 months) and below budget, with an ongoing revenue share relationship intact.