Business Divestment in Telecoms

Transitioning a business for a £1¼ billion sale. Successfully delivering the financial separation.

Background

The client, a leading UK telecoms provider, had accumulated a portfolio of businesses through acquisitions and mergers over many years. With a new business strategy to focus on its fixed line services, the client had agreed in principle the sale of its broadcast business to an investment bank for a consideration of £1¼ billion.

The separation of the assets and finances of the broadcast and core business had to be completed before the sale was concluded. As the separation fell behind schedule, additional experienced management was needed to deliver this critical element of the transition.

The Work

Appointed by directors handling the sale to restructure and deliver the financial separation. The work involved:

  • Instigating a realistic work plan with fall back strategies to counter the risk of missing critical milestones.
  • Selling the work plan to the broadcast finance director, the sale directors and the buyer.
  • Intense management of in-house, third party and off-shore resources to deliver the separation.
  • Gaining consensus from the broadcast and core businesses for the asset allocation, turnover, costs, debtors, creditors, tax liabilities, WIP and adjustments.
  • Managing stakeholder confidence during the approach to critical milestones.
  • Providing post separation advice and guidance to the sale team.

The Benefits

Financial separation concluded in time to allow the deal to complete. The client was able to realise the funds from the sale and pursue new opportunities in line with its fixed line strategy. The broadcast business finance director was appointed to the board of the new vehicle created to manage the asset.

Work Categories