Divestiture

Divestiture is not an end in itself but rather a means to building companies that can grow and prosper over the long haul. Wise executives divest businesses in order to create new ones and expand existing ones. Companies are under increasing pressure to sustain growth and retain existing customers, while reducing the impact of organizational changes such as divestitures.

When companies divest, it is necessary for both the parent company and the divested company to become autonomous units. The parent company must unbundle the divested company’s customers, products, transaction history, and infrastructure in addition to separating the financials.

eprentise Divestiture software facilitates the divestiture process by creating two separate Oracle® E-Business Suite instances – one for the parent company and one for the divested company – while retaining all key information assets of each. eprentise Divestiture software allows you to divest data based on any type of criteria including legal entity, sets of books, business unit, product line, customers, regions, or organization units. Both end databases remain complete, functioning, and fully configured with only the information relevant to each continuing company. Each company’s application has only its own data, ensuring that the parent company is comfortable with data security while enabling the divested company to function completely on its own.

Starting with a clone of the production system that contains all the data from the parent company and the company that is to be spun out, you define the divestiture criteria in rules used to filter out the divested company’s data. eprentise Divestiture software finds all related data that matches the criteria and eliminates that data from the original database. The software copies all supporting configuration, master data, and transaction data to the divested database to maintain the relational integrity of both the source system and the divested system.

The eprentise team has helped companies rapidly spin off parts of the information systems of a company to position it for a sale or a divestiture including:

• The divestiture of a division of a large chemical company, the separation of the systems and the processes, and then the merging of that divested company with a competitor company within an 18 month period
• The development of a strategy for divestiture of 8 business units of a global telecom company.