Divestment Planning for Global Minerals Mining Group

Carve Out Scenario Planning and Divestment Support Services

Business - Digital - Prof Svcs - MA & D

Client Need

A Global industrial conglomerate decided to sell off one its minerals divisions. Parent group requested rapid exit readiness assessment to determine whether the minerals business was ready for sale. Team was engaged to assist with preparation of carve out financials for business divisions, and provide separation planning assistance for IT, Operations, HR, Finance, Tax and working capital arrangements. Three distinct separation planning scenarios needed to be evaluated: Sell A, Sell B, Sell A&B.

Our Approach

Exit readiness assessment was conducted via meetings with CIO and business leads (USA & Europe). Rapid assessment of IT landscape conducted identifying significant separation challenges. High dependency on Parent IT & Shared services for key service delivery. Diverse application landscape with shared systems used by Parent and shared between Divisions A & B. Reviewed IT IP, contracts & licence landscape identified relicensing & stranded cost issues. Assisted Business & IT separation planning, costing; and IT operating & service delivery model design for the divested business/(s).

Outcome Delivered

Rapid exit readiness assessment helped management team to understand the scale of the separation work required. Provided framework & support to help management prepare: A comprehensive separation plan aligned from business and IT perspectives. Detailed Cost models distinguishing: Opex, Capex, Separation costs, Transitional Service Agreement & stranded costs. Separation report outlined IT operating & service delivery models, & separation strategy: IP, Contracts, Licence, TSA’s, applications & infrastructure landscapes.