$300M Manufacturer — Divesting a Business Unit
Making a business unit look like a standalone, profitable business, not a cost center. The challenge wasn't finding a buyer — it was financial presentation.
The Challenge
The company had decided to divest a business unit, but the financials told the wrong story. Embedded within a $300M operation, the unit's numbers were tangled with shared services, corporate allocations, and intercompany transactions. On paper, it looked like a cost center — not the standalone, profitable business it actually was.
The challenge wasn't finding a buyer. It was presenting financials that would survive scrutiny and support the valuation the business deserved.
What We Built
Financial Carve-Out
We created clean standalone financials for the business unit with proper shared services allocation methodology. Every cost was examined and allocated appropriately — separating what truly belonged to the unit from corporate overhead that would remain with the parent. The result was a clear picture of true profitability that buyers could trust.
Deal Support
We coordinated directly with the investment banking team on valuation methodology and supporting analysis. Our work included:
- Building and managing the data room with institutional-grade organization
- Responding to buyer financial inquiries with speed and precision
- Supporting due diligence processes across multiple interested parties
Post-Divestiture Planning
The work didn't stop at the transaction. We modeled the impact on the remaining business:
- P&L impact modeling for the parent company post-sale
- Remaining overhead obligations and stranded cost analysis
- Transition service agreement structuring and pricing
Engagement Model
Project-based engagement with a success fee tied to transaction value. We were aligned with outcomes, not hours.