Successfully Managing Major Utility Business Spin-Offs and Divestitures

Unlocking Value through increased focus

Many utilities have been redefining the scope of their businesses in the past couple of years by shedding units to focus on core activities. The value of utility divestitures rose nearly four-fold in 2014 compared with 2013, to $13.9 billion.

Most business leaders understand that a merger requires a high level of attention and energy from executives to be successful. However, few leaders give the same thought to managing a divestiture, and in many cases, profit declines after a sale. In fact, a successful divestiture requires just as much work and planning as a merger.

Utilities face some special challenges to keep profits stable or rising after a divestiture. Typically, the highest priority and greatest challenge is minimizing potential stranded costs and dis-synergies from shared functions and assets. Additional complexity comes from the difficulty to fully separate information systems and operations before a transaction closes and the need for post-close transition support. This paper guides you through the process to ensure success.

Successfully Managing Major Utility Business Spin-Offs and Divestitures