Guiding through divesture

Making a deal…to divest.

Deal breakers?
A company was in the final stages of spinning off a division.  In the eleventh hour, the executives going with the new owner began questioning their compensation packages, threatening the consummation of the deal. They raised questions about retention, severance, and change of control provisions.

Our advice: stay the course
Commonwealth HR Consulting (CHRC) analyzed the employment agreements of the executives, evaluating the facts and business circumstances around the divestiture. Based on our experience with similar situations, we advised the divesting company on what obligations it did or did not have under the circumstances.

  • The CFO returned to the negotiating table with a strong grasp of both the spirit and letter of the underlying employment agreements
  • He understood that the departing executives were being treated fairly and in accordance with typical practice
  • He was able to bargain and focus on the financial aspects of the deal