Our long-standing client, a Global Tier I Automotive OEM supplier, decided to carve-out and divest one of its business units in order to invest in higher margin product categories. They split the Division and sold it to two separate foreign entities in parallel transactions exceeding $800 million. Liberty was engaged to manage IT Separation activities and to ensure the Buyer received ongoing services in accordance with the TSA (Transition Services Agreement), while minimizing risk and impact on the Seller’s daily operations.

Divesting a significant portion of a global enterprise presents numerous IT challenges, particularly when dealing with international buyers and intricate legacy systems.

The key challenges included:

• Maintaining Business Continuity: Ensuring the uninterrupted flow of over $30 million in daily transactions through the global ERP system during the separation process was paramount.
• Managing Complex Transition Service Agreements (TSAs): Providing ongoing IT services to the buyers post-sale, as stipulated by the TSAs, while simultaneously disentangling the divested units’ IT infrastructure.
• Minimizing Risk to Seller’s Operations: Executing a clean and secure IT separation without disrupting the seller’s core business operations or compromising sensitive data.
• Coordinating Multiple Stakeholders: Facilitating seamless communication and collaboration between the seller, two separate buyers, and multiple IT service providers.

Liberty Advisor Group quickly mobilized a dedicated team and established a Separation Management Office (SMO) to oversee all IT aspects of the divestiture.

Our approach focused on:

• Strategic Planning and Execution: We worked closely with the client’s leadership to develop and implement detailed separation strategies, ensuring alignment with the overall divestiture goals.
• Buyer Collaboration: We established clear communication channels and a regular cadence with both buyers to address their needs, manage change requests, and facilitate a smooth transition.
• Risk Mitigation: We implemented rigorous security protocols and carefully planned the physical separation of IT infrastructure to minimize disruption and safeguard the seller’s environment.
• TSA Management: We managed the delivery of IT services to the buyers according to the TSAs, ensuring compliance and maintaining positive relationships.
• Expert Project Management: The SMO provided comprehensive oversight of all IT activities, tracking progress, resolving issues, and ensuring timely completion of milestones.
• Conversion Rate Optimization: In addition to managing the separation, we identified opportunities to improve the client’s conversion rate, leading to significant top-line revenue growth.
• Minimized Disruption: The IT separation was executed with no disruption to the seller’s core operations and minimal risk to their environment.

This complex divestiture demonstrates Liberty Advisor Group’s expertise in managing intricate IT separations and delivering successful outcomes for our clients. Our strategic approach, detailed planning, and collaborative execution ensured a smooth transition for all parties involved, while also unlocking significant value for our client through improved operational performance.