Grocery carve-out

Rayon de fruits et légumes

Advanced data-driven approach in building financial information to optimize the carve-out process.

The challenge

Our client, a high profile multi-national grocery group was considering carving out part of its activities, consisting of hundred of entities with significant intercompany flows.

Ahead of the start of a  sale and due diligence process, our client wanted to investigate multiple potential scenarios for the perimeter of entities to be disposed of and how to split them into separate subgroups to maximize transaction value.

In this context, our client needed to be able to quickly produce new sets of full financial statements and corresponding standalone analyses for each subgroups carved-out, depending on multiple scenarios to be investigated over the length of the process.

While the IT system could provide sufficient and relevant raw data, management’s bandwidth was too limited to manually perform meticulous operations required to build this information, thus requiring a high degree of automation.

The outcome

We developed a dynamic consolidation tool allowing a high degree of flexibility over the perimeters and sub-perimeters definitions.

With this dataset, management was able to dynamically perform the consolidations of full sets of financial statements for each sub-groups, adapting to changing scenarios, which could be shared with all advisors, the due diligence team, and bidders.

Combining hundreds of financial statements and intercompany flows into a single and dynamic dataset allowed to rapidly build stand-alone analyses for each subgroup while ensuring the integrity and consistency of financial information. This allowed the client to optimize the disposal process.

Additionally, we were able to provide management with dynamic dataset allowing a deeper understanding over complex intercompany flows and define new angles of analysis for business unit performance review.

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