3 Competencies To Look for in a Divestiture Partner
Choosing the right partner to assist with a divestiture is a critical precursor to the process. For those companies inexperienced in or lacking the necessary internal resources to handle the process, the tendency for technological hardships grows exponentially. What’s more, without the proper third-party support, not only can companies compound the common challenges that pop up during the process, but they can also incur critical risks to their day-to-day operations.
The Importance of an Experienced Divestiture Partner
When beginning the divestiture process, the first step leadership most often takes is developing the project plan, complete with the resources and talent needed to undertake the project. These will often be allocated and structured during upper management meetings in the planning process, followed by an extensive audit that includes assigning internal talent to support specific IT verticals, planning around technological challenges, and developing an agreed-upon timeline.
However, the secret to success is adding a partner early in the planning process to collaborate from the onset and offer their expertise to drive the project. This provides an ample opportunity for the partner to give actionable advice while outlining the plan, maximizing value with an eye toward time-to-revenue and full-cycle support. This includes:
Operational and Organizational efficiency – A partner will identify the need for resources and talent. They will then vet, source and assign skilled talent needed at each stage in the process, which allows the company’s internal team to focus on the day-to-day functions that keep the business running smoothly.
Challenge Mitigation – With a partner providing support at the onset, a team of experts can be internally assigned and externally sourced to support all IT verticals involved in the divestiture. Doing so provides the needed support to quell technological and software hardships that may pop up — all while third-party client leadership/delivery teams recommend and implement strategies that streamline the process.
New perspectives – An experienced partner provides a much-needed, top-down outlook for company processes, departmental plans and staff assignments that can get lost in the day-to-day shuffle. This allows for a plethora of on-the-job evaluations, ideas and constructive conversations that help spark business ingenuity – whether they involve opportunities to better allocate resources and talent to match the business plan or the provision of impartial second opinions for tough decisions needed to meet targeted goals.
Necessary Competencies for Divestiture Partners
In the preliminary stages of planning a divestiture, choosing an experienced partner needs to be at the forefront of the discussion. To ensure each side is on the same page, organizations should consider the following key competencies:
Prior Experience in M&A Work – partnering companies should be able to provide a proven portfolio of success in divestiture, merger, or acquisition efforts. Partners need to be able to outline their specific role in the planning, implementation and evaluation processes, what resources they provided or allocated, and provide full insight into what goals they were tasked with accomplishing on the divesting company’s behalf.
Deep Connections to industry experts – companies should have direct and meaningful relationships with technical experts and leading companies within the information technology industry. This allows for a greater pipeline to source talent, while providing knowledgeable insight that streamlines the process and mitigates IT challenges.
The Ability to Rapidly Generate and Deploy Teams Globally – organizations should be able to pull together a team of experts in a variety of locales and IT verticals, as well as deploy them to the divesting company’s desired location with ease. A company with both a leadership and delivery team stationed on multiple continents will be able to vet, source and provide needed talent rapidly, and at a more affordable cost.
Choose Resolvit for Your Divestitures Mergers & Acquisitions
Choosing the right partner can make or break the divestiture process, which is why our team is here to lead companies through the divestiture, acquisition and merger processes. Resolvit has the proven experience, skills and global resources necessary to streamline high-priority projects. We also source, vet and train experts in the use of management platforms, a variety of remote engagement tools, application re-branding, technical/cloud engineering and more.
Many organizations may not have the skillsets, in-house capabilities, or applications that they need to migrate, stand up and build out the necessary functions for their business. Choosing Resolvit ensures organizations will get the experience, knowledge and resources they need to get the job done and ensure continued success.
Want to see a real-world example of Resolvit’s divestiture successes? Check out our latest case study here.