Sector: Financial Services
Service: Divestiture Program of a Business Unit of a Bank
Location: Canada
The Engagement:
This Schedule A bank in Canada was divesting itself of a line of business to a newly established organization. Initial due diligence revealed two key areas the client required assistance with:
- Key client retention following the transfer of the business unit to new owners
- Financial reconciliation of share positions within the corporate plans being sold
- Key employee retention strategy and execution to transition to new company
The Approach:
The client required Advisory and Management services to effectively be able to transition the business to the new owners. We used a multi-prong approach:
- Prepare strategy, timing, and plan for divestiture
- Engage our finance team to assess and determine the full extent to which reconciliations were necessary and report to client
- Meet with the seller and the buyer to determine expectations and timelines
- Retain our financial/operational team to perform a full reconciliation dating back 3+ years
- Engage the Sr. Management Consultant as the Program Director to deal directly with key bank clients across Canada that are impacted by new ownership
- Involve impacted clients in the communication and transition process
- Engage with Internal Audit to validate all reconciliation findings and provide supporting documentation
- Meet with key employees to discuss the process to move to new company
- Work with HR of the Bank to complete employee transitions and documentation
- Engage with buyer and seller in regular meetings providing updates as required
Outcomes:
The buyer was satisfied that the reconciliation had reached a sufficient stage and the deal closed on time and on an agreed price. Several team members were recruited by the buyer for the new company.
