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

Global Transaction Law Leader

Rutger Lambriex

EMEIA LMS Leader, Contract Lifecycle Management

Seth McNary

Americas Legal Managed Services Leader

John Knox

APAC Legal Managed Services Leader