Preparing to conduct a divestiture starts well before the Buyer is even identified. Beyond the well-established practice of setting up a Data Room, savvy Sellers create multiple scenarios for IT transitions that include an assessment on the impact on the core business and IT during the divestiture and after it is completed. The Seller’s readiness to move swiftly and surely through the time-constrained period between Day 0 and Day 1 is set before the Deal is announced.
- Seller’s IT Readiness Assessment for M&A IT
- Divestiture IT Evaluation Checklist and Data Room Guide
- Seller’s Strategy for IT Separation of Divestiture,
- Transition Services and Restructuring
- Seller’s Estimate for IT Separation of Divestiture
- Transition Services and Restructuring
- Seller’s Deal Term Sheet for IT
The time-pressure of getting to Day 1 can be overwhelming even to well-prepared IT teams. In divestitures with complex IT transitions the over-focus on Day 1 can cause critical Transition Services Agreement provisions to be over-looked, post-transition impacts on core Seller IT and business operations to be missed, and estimates and plans for Day 2 separation projects to be skipped entirely.
It is common for Day 0 to Day 1 timelines to be only 30-90 days. Knowing what to do and getting it done before Day 1 saves the Seller considerable money and avoids aggravation, disappointment and considerable costs. If your team needs help, don’t delay in getting it.
- Divestiture IT Due Diligence
- Seller’s Strategy for IT Separation of Divestiture including
- Business/IT Alignment, Restructuring Requirements and Opportunities & Cost/Benefit Analysis
- IT Transition Services Agreement and Operating Model
- IT Transition Services Preparation, Delivery and
- Operational Management
- IT Separation Concept of Work and Day 2 Commitments with Buyer
- IT Sale Agreement and Inventory
- Seller’s Evaluation of M&A Program Readiness
The Seller may have the best understanding of the Divestiture’s IT landscape and services but after Day 1, the cost and responsibility to complete the transition belong to the Buyer.
When IT TSA’s are required, the Seller can make the transition easier by leveraging the work done before Day 1. Playing catch-up in this phase is often very costly and highly disruptive to Seller and Buyer alike. If IT TSA operation and management are not a core strength, bring in the help you need.
Delayed IT transitions of your Divestiture will degrade Deal Value, block other valuable IT work and frustrate both business and IT teams. If your Day 2 projects are not planned or are underway but lagging, bring in the help needed to accelerate IT separation.
- IT Transition Services Agreement Management
- IT Transition Services Delivery and Operational Management
- IT Separation Project Plans for Day 2 with Confirmed Timelines, Costs, Resources
- IT Restructuring Concept of Work for Day 3
For the Seller’s IT team, the Deal doesn’t end at Day 1 or when the final TSA is closed. Divestitures can often de-leverage IT services, technology platforms, contracts and organizations.
Sellers with plans to address the post-Divestiture period ensure that they capture the maximum value from the Deal and minimize the disruption to their core business and IT operations. Planning for IT Restructuring early saves money.
- Business and IT Aligned Restructuring Strategy and Concept of Work
- IT Restructuring Project Plans for Day 3 with Confirmed Timelines, Costs and Resources
- IT Restructuring Value and Trailing Cost Tracking