Divestitures are accelerating across industries as companies reshape portfolios, unlock capital and pursue strategic growth by shedding non-core assets. Yet while carveouts are typically well addressed from a legal and financial perspectives, human capital and operational complexities are often underestimated, making the "true costs" of a divestiture manifest well beyond sale. The result? Delays, extended Transition Service Agreements (TSAs), and erosion of deal value.
In WTW's rich experience with M&A transactions – completing almost 2,000 highly successful mergers, acquisitions, divestitures, and spinoffs per year – lack of preparedness on the HR, operations and people front are among the top reasons why a deal underperforms or carveouts are unable to achieve full Day 1 readiness. Key pain points include:
These challenges are real, but they are not insurmountable. With the right approach, organizations can accelerate carveouts on the HR side, while minimizing risk and protecting deal value.
That's why WTW developed Global Human Capital Divestitures in a Box (DIAB): a breakthrough turnkey HR solution that delivers a cost effective Day One readiness in 20 weeks or less, backed by our robust M&A consulting expertise in Global Total Rewards, Compensation, Organization & HR Function and Operations, and Employee Experience, coupled with an extensive pre-negotiated vendor ecosystem across payroll, HRIS and benefits administration. The results are significant:
Divestitures are not just financial transactions—they are human transformations. Companies that treat the people side with the same rigor as the financial side will protect value, and accelerate execution. With WTW's DIAB, organizations can turn divestiture complexity into a competitive advantage.
David is a global leader on WTW M&A global leadership team. He has over 20 years of experience helping clients improve their business performance through effective people, risk and financial management. He has extensive consulting experience in M&A transactions, HR and organization effectiveness.
Perry is the Global M&A Practice Leader and is based in WTW's Short Hills, NJ office. He works across the globe with our clients on all types of complex transactions. Perry was formerly a Partner and the Global Human Capital M&A Strategy and Commercial Leader at Aon and the Americas HR M&A Practice Leader at EY. He has been consulting exclusively on the people issues raised in the context of all forms of complex global corporate transactions for over 25 years.
