United Kingdom

Exit Planning & Implementation 

Helping to close an underperforming subsidiary, division or office.  We can also help manage the delicate process of planning and implementing exit strategies within Joint Ventures by working closely with KPMG's specialist Joint Ventures team. Read more

What's on your Mind?

 

  • An underperforming division is holding back a group's value/results and taking a disproportionate amount of management time.
  • Recently completed strategy review.
  • A loss-making non-core activity.
  • Migration to a lower cost country.
  • A multi-national closure programme requiring experienced knowledge and resource.

 

Bringing you peace of mind

 

  • Hands-on support for exits from subsidiaries, divisions, countries, contracts and other business activities.
  • Support through assessment of options, planning for a chosen scenario and implementation of the exit.
  • Programme management support against defined and agreed readiness criteria.
  • Robust challenge of existing assessments and plans.
  • Resource with deep and broad experience.
  • Tried and tested methodologies and tools.
  • We structure our thinking under key areas of complexity: People, Property and assets, Stakeholders, Operations, Liability management and Legal and tax.
  • We can also help manage downside risk on establishing new businesses.
 
What's in it for you?
 
  • Management time freed up to focus on the core business.
  • We can consider self-funding success fee arrangements (in selected jurisdictions).
  • Our robust and objective assessment allows the decision making to be free of natural local bias.
  • We can review and challenge existing assessment to provide clarity on areas for development.
  • We can help clients apply effective governance and programme management frameworks.
  • In some circumstances we can take on a 'hands on' executive role in the closure implementation.

 

Why KPMG?

 

  • KPMG firms have supported closures of many businesses across Europe over two decades including our work with insolvent companies.
  • We aim to provide the client with:
    • Additional visibility.
    • Enhanced challenge.
    • Greater financial robustness.
    • Experience based knowledge.
    • International reach.
Case Study - Project Starfish
 
  • We worked with a large international group to help divest a non-core and loss-making retail business. We helped the client get ready to close in case a final attempt to sell were to fail.

 

  • Key areas where we added value:
    • Assessment report on timing, costs and risks of closure.
    • Robust forecasting of performance, balance sheets and cash flows.
    • Proposals for 'quick win' savings initiatives.
    • Consideration of selling with a 'dowry'.
    • Successful programme to reduce exposure to  inventory forward orders.
    • Detailed steps-plan to close the business.
  • The joint KPMG team was able to help the client sell the business for positive value alongside robust fall-back planning. If the sale had not completed the business was ready to close without further costly delay and value destruction.