A well-written TSA eases IT transitions.
By William Blandford, Managing Director at Blandford Associates and Member of the Board of M&A Standards
While many people have participated in the acquisition of a business, fewer have participated in a carve-out, a type of divestiture where a part of a business is sold. However, as businesses move toward a portfolio-management model, where they are both acquiring new businesses and shedding loss leaders, effectively managing divestitures will become an increasingly important skill.
Divestment has also already proven a valuable strategy for value creation. McKinsey recently conducted a survey of the 1,000 largest global companies and found that the organizations actively involved in both acquisition and divestiture created as much as 4.7% more in stakeholder returns, compared to organizations that focused solely on acquisitions. Read more.