Large Divestiture Highlighted Operational Challenges Which Threatened Deal Value
With the decision to divest a significant portion of their business, our client had to quickly review all balance sheet accounts to prepare for its eventual sale. As part of their assessment, they identified thousands of outstanding unprocessed intercompany transactions. These transactions, if left unsettled, could have had a direct impact on the divested business unit’s ultimate sales price. With hundreds of operating facilities located on five continents, our client needed external assistance in managing the process of identifying the issues and facilitating resolution of these intercompany transactions. DayBlink identified root causes and key contacts across regions, provided the necessary diligence to facilitate the settling of the transactions, and developed data-driven global insights for the client’s senior leadership to make cost-effective decisions before the date of sale.
Assessed Key Project Details:
Our client needed to settle thousands of outstanding intercompany balances before the sale of a large business unit. The client needed not only a team dedicated to managing the process but also advisors with a comprehensive understanding of accounting standards and controls typical of a large multinational organization. Due to staffing challenges facing the client as a result of the many needs surrounding the divestiture, our client was unable to dedicate enough resources of their own and entrusted DayBlink to accomplish the task. DayBlink acted as an extension of management in facilitating settlement of these aged balances and reported directly to the business unit executive team, escalating issues when necessary.
Became the Go-To Team for Business Intelligence:
DayBlink provided immediate assistance by performing a detailed analytical review of the intercompany landscape and identified the critical elements of making progress – in this instance, finding the right contacts and pinpointing critical bottlenecks in the process. DayBlink added extra value by unearthing insightful trends from company data, which in-turn empowered our client to make well-informed decisions. For example, based on DayBlink’s analysis, the company chose to write-off immaterial aged balances up to a certain threshold, allowing the team to focus their time and energy on larger value invoices. Additionally, DayBlink was able to split the data by region and counterparty business, allowing the business unit to quickly find the proper counterparty contact to resolve any issues.
Resolved Over $50M in Outstanding Transactions by date of sale:
DayBlink successfully facilitated the clearance of over 10,000 outstanding, unsettled balances, while simultaneously identifying and correcting operational issues which created these unsettled balances in the first place. This settlement ultimately saved the client millions of dollars on the final sale price of the divested business unit.