The Deal:

Large international conglomerate was divesting of a $300M industrial manufacturing division in the petrochemical industry. Acquirer was a Large Market Private Equity firm specializing in the petrochemical industry. Target engaged Sabio to plan and manage the complex carveout initiative.

 

Sabio Engagement:

  • Identified key strategic objectives with the executive team including, strategic business goals, investor expectations, key constraints, budget allocations, acceptable risk, key KPIs, and Board of Directors reporting requirements

  • Assessed current technology-related staff in order to determine suitability for the standalone company, and identified key gaps in technology personnel

  • Analyzed the capabilities of the entire organization related to technology and made recommendations for the standalone entity, focused primarily on technology leadership and specialists for key software platforms

  • Developed a comprehensive technology and operations integration plan/execution roadmap to consolidate all business operations and the underlying technology to support the combined business

  • Developed a high-level estimate of the resources and spend required to execute upon the integration plan/roadmap

  • Developed a high-level functional value chain in order to properly understand the level of shared services with the parent company and the complexity of the carveout

  • Performed a full analysis of software contracts and made recommendations for transitioning contracts to the new company

  • Assessed software platform currently in use, identified gaps, and generated RFPs for new platforms as needed

Divestiture Planning Outcome:

  • Jointly established the divestiture management office (DMO) that worked closely with the seller's DMO to ensure the carveout was managed effectively

  • Company made key decisions on resources of the acquired company as to which should be retained, then hired additional resources to supplement the existing teams in line with the integration plan

  • Company executed upon the roadmap as established, with adjustments made as necessary, and successfully met key deadlines

  • Company incorporated much of the learnings from this engagement into future planned acquisitions, so that they would be able to execute without our assistance

  • Company successfully negotiated new technology/software platform agreements with vendors

Divested company had a hard deadline imposed by the investor and seller to establish independent operations, which was fully met by the deadline; company experienced no significant operational disruption and is on track for a subsequent sale for substantial gain to the investor