Five steps to manage contract separation during divestitures

Effectively managing third-party supplier and customer contract separation is a critical task for CFOs and supply-chain leaders.

A typical divestiture includes hundreds or thousands of supplier and customer contracts that need to be correctly assigned to the company being divested (DivestCo).

Whether a carve-out sale or tax-free spin, separating contracts may take up to 12 months, so companies should begin the process as soon as they identify an asset to divest.

Contract separation should also be a top-of-mind issue for procurement teams, as more than 84% of global organizations expect to divest in the next two years, according to the EY Global Corporate Divestment Study 2019.

The full article can be accessed here.

EY Law key contacts:

Jean-Christophe Sabourin

EY Global Transaction Law Leader

Rutger Lambriex

EY EMEIA LMS Leader, Contract Lifecycle Management

Seth McNary

EY Americas Legal Managed Services Leader

John Knox

EY APAC Legal Managed Services Leader