Divestitures – CrossCountry Consulting

CrossCountry offers a comprehensive, tailored approach throughout the lifecycle of a divesture to aid an organization in realizing the transaction’s objectives. We leverage our experience across accounting advisory, business transformation, risk and compliance, and technology solutions to help clients maximize shareholder value through the separation and beyond.

Our capabilities include support for program, change, and risk management, and functional day one readiness process and system design, testing, training and execution. Furthermore, CrossCountry has deep expertise developing and implementing carve out accounting methodology, addressing regulatory reporting requirements and evaluating the impact of SOX.

Divestiture Readiness Complexity Considerations

Divesting a business unit can streamline an organization’s corporate strategy and unlock shareholder value. To succeed in realizing your transaction objectives, understanding and properly planning for the complexity of the divestiture is critical. Has your organization considered the following?

Our Service Offerings

Separation Governance, Planning & Program Management

Through program/project management, we help our clients successfully plan and complete complex strategic transactions. We incorporate change management and communication best practices to maximize efficiency and value, and to ensure effective communication.

Program and project management set up and support
Communication planning and change management
Dependency, risk and issue coordination and resolution

Accounting Policy & Financial Reporting Preparation/Support

We help clients define carve-out methodologies based on leading practices and incorporate those into carve-out financial statements, while also engaging with external auditors to enable the completion of the carve-out audits. Throughout the process, we provide accounting policy guidance and preparation of policy papers.

Accounting policy guidance
Policy paper preparation
Carve-out methodology definition
Audit readiness and external auditor liasion

We have extensive experience preparing financial statements as determined by the transaction requirements including AICPA financial statements and required SEC filings.

SEC filing project management
Form 10, S-1/S-4 preparation
Private placement offerings

Risk Management

As organizations embark in these transactions, the risk universe will change dramatically. We evaluate the organizational changes through the lens of your risk management framework including impacts to the internal audit plan, internal control environment and cybersecurity threats.

Internal audit plan modification
SOX program implementation and optimization scope
Integration and pre-deployment controls assessment for business process and IT controls
Cybersecurity and privacy assessments
Threat intelligence and attack simulations

Day One Operational Readiness

We prepare and implement operational readiness plans, including system cutover and control environment assessments. We ensure readiness by coordinating with external auditors, internal stakeholders, and third-party providers to design future state functional operating models, provide support for system testing and process knowledge transfers, and define and manage Transition Service Agreements (TSA).

Future state functional operating model design
Operational readiness planning and knowledge transfer facilitation
System cutover planning, data conversion, testing execution and management
TSA design and management

Post-Transaction Optimization & Support

We assist both RemainCo and NewCo with identifying post-transaction optimization opportunities with operating models, business processes, and systems and control environments.

Operational and technology optimization roadmap and TSA exit strategy acceleration
Intelligent automation, analytics and data management support
Finance and accounting support for discontinued operations, recasting Forms 10-K, 10-Q and 8-K
Playbook for future transactions

Featured Insights & News

Divestment Strategies: Maximizing Value For Your Organization

Divesting a portion of an organization can maximize shareholder value, but management needs to assess and understand the complexity up front in order to properly plan for a successful transaction.

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Preparing Carve-Out Financial Statements: 4 Common Misconceptions

We highlight four common misconceptions encountered when preparing carve-out financial statements and how to deal with them.

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