Companies thrive by expanding, not shrinking. Yet shedding assets can create substantial benefits. The crucial factor: is 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

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.