SERVICES
Maximizing Divestiture Value
This $26B, 100,000-employee organization included seven operating units. As part of a broad portfolio rationalization, the decision was made to divest a number of the operating units, including four that involved multi-billion dollar companies with tens of thousands of employees.
Each intended divestiture was publicly announced in advance. While this had many advantages, there were significant risks that key talent would be recruited away, or that the uncertainties associated with change would distract employees from taking care of customers and delivering targeted sales and profits during the period leading up to completion of the divestiture. Addressing these risks in an effective way was critical to achieving the desired sale value from each divestiture.
TAILORING SOLUTIONSIn each of these cases, Jim oversaw the development of employee communications plans, key employee retention plans, and performance-based incentive plans tailored to the company’s specific circumstances. By applying a methodical, comprehensive approach to these processes, each company was able to retain key players and keep the workforce focused on the delivery of results.
DELIVERING RESULTSThe combined effect of these communications, retention, and incentive initiatives contributed substantially to the delivery of solid operating performance during the time period leading up to the divestitures. Most noteworthy, in each case, the divestiture was accomplished with a sale price at or above analysts’ estimates.