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:
EY Global Transaction Law Leader
EY EMEIA LMS Leader, Contract Lifecycle Management
EY Americas Legal Managed Services Leader
EY APAC Legal Managed Services Leader