Telecommunications Group Administration

Divestment Support and Break-Up of Telecommunications Group in Administration

Business - Digital - Professional  Services - MA & D

Client Need

A major global Telecommunications organisation went into administration in the UK. The transaction integration team was asked to provide support to the administrators with regard to viability of divestment options. This involved analysing feasibility, plans, risks and costs of each divestment option by evaluating plans with respect to the finance, HR, real estate, IT and core and non -core business functions. Plans had to reflect the latest restructuring initiatives underway to add a further layer of complexity.

Our Approach

We provided weekly updates to the administrators on the progress of the client IT team through liaison with the IT divestment lead and key divestment team members with respect to each divestment option being considered. Reports produced were focused on progress with respect to: pre-signing tasks and activities; day 1 preparation (full legal close); TSA requirements from day 1 onwards; day X preparations (full logical and physical separation requirements) Analysis conducted focused on an assessment of risks, quality of divestment plans and the accuracy of cost estimates for separation. Areas reviewed included: IT application and infrastructure landscape plans. IP, contracts, software licence and TSA requirements, IT organisation and operating model considerations.

Outcome delivered

Regular timely reporting to administrators on divestment progress were provided. Flagged risks and contingency plans developed to mitigate. Robust challenge to global parent company was provided. Helped to maintain pace and focus of divestments. Provided deep technical input where client lacked experience, skills or knowledge. Supproted client teams to consider options for separation and integration with potential buyers.