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.
