Global-Life-Sciences

Get a Repeatable Operating Model to Carve Out Divestments

ISG supports a global life sciences company with divesting some of its existing IT and BPO business units to obtain regulatory approvals.

Opportunity
Opportunity

A global life sciences company had to divest its businesses fast and completely, but also had to deal with complexity and uncertainties in scope and timing due to enhanced demands from regulatory authorities.

Its previous landscape was fully integrated with the business setup of a large organization. The new carve-out solution needed to be simplified and “fit for purpose” to meet the needs of the smaller business portfolios being divested.

The scope of the engagement included both IT (enterprise resource planning (ERP), human resources (HR) IT and other applications;  IT infrastructure; IT support, etc.) and business process outsourcing (BPO) (finance and accounting (F&A) operations; procurement operations; HR operations, including payroll).

 

Imagining IT Differently
Imagining IT Differently

To meet the company’s needs, ISG took a fast-track contracting approach (request for solutions/ proposals (RFS/RFP)) to award a prime contractor for upcoming carve-outs.

We defined a standardized and streamlined contract architecture which is applicable for the seller in the period until Day 1 (during the migration phase) and the following run phase for the acquirer.

ISG also provided a contractual and commercial interface between the company (including the company’s project management, procurement and legal teams) and the prime contractor. Ultimately, ISG managed the prime contractor’s adherence regarding deliverables and obligations (D&O) to ensure Day 1 readiness.

 

Button-CS-Future
Future Made Possible

  • The company received a defined solution which is an innovative key enabler for divestment projects, allowing the company to transfer a fully-enabled business at Day 1. This transfer will be able to include fully-enabled assets and people and also a reliable administrative backbone pertaining to the scope mentioned in the first section.
  • The carve-out solution is designed and built jointly by the company (seller) and the prime contractor during the migration phase prior to Day 1.
  • At the date of closing, the company was ready for its organizations, systems and processes to go live and for the outsourcing relationship to be handed over to the acquirer.