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How to Plan a Divestiture from HR’s Perspective

How to Plan a Divestiture from HR’s Perspective

Show Notes Of Podcast

Show Notes:

0:00 Introduction

1:08 Sallie’s background

2:44 The role HR plays during a divestiture

3:43 The process of moving employees

5:45 Center Of Excellence definition

6:50 Legal entity structure’s impact on the deal

11:40 Multinational teams

13:04 What goes into payroll and benefit agreements

18:01 Transparency when moving people

30:55 The sell process and accommodating buyers

36:04 Day 1 and what could go wrong

38:43 Typical length of time for a carve-out

39:57 What goes into a communication plan for a divestiture

50:52 The biggest challenge in the whole process

52:30 Craziest thing Sallie’s seen in M&A

56:00 Closing remarks and end credits

 “The first thing we talk about is understanding the very specific products or assets being sold, and then we identify the people around that.”

HR’s involvement during a divestiture

On this episode, Kison speaks with Sallie Cunningham about how to plan a divestiture from HR’s perspective. Together they discuss the process of moving employees, how to approach ringfencing, and what Transition Service Agreements (TSAs) are. Sallie also explains what the key materials HR must have when it comes to preparing for due diligence during a divestiture and which transition records are required for HR to gather.

At the time we recorded this podcast, Sallie was the HR Executive and M&A leader for GE Corporate, where she was leading the HR workstreams for the sale of GE Healthcare's Biopharma business to Danaher, which closed on March 31, 2020. The business, now called Cytiva, is a standalone operating company within Danaher's Life Sciences segment. Sallie transitioned to Cytiva at close and is now the HR integration leader for the business. 

“If you think about what the business needs for Day 1, they have to be able to accept a purchase order, invoice a customer, ship a product, and of course pay the employees. There are a lot of things that can be figured out after close, but payroll is not one of them.”
 “The first thing we talk about is understanding the very specific products or assets being sold, and then we identify the people around that.”

HR’s involvement during a divestiture

On this episode, Kison speaks with Sallie Cunningham about how to plan a divestiture from HR’s perspective. Together they discuss the process of moving employees, how to approach ringfencing, and what Transition Service Agreements (TSAs) are. Sallie also explains what the key materials HR must have when it comes to preparing for due diligence during a divestiture and which transition records are required for HR to gather.

At the time we recorded this podcast, Sallie was the HR Executive and M&A leader for GE Corporate, where she was leading the HR workstreams for the sale of GE Healthcare's Biopharma business to Danaher, which closed on March 31, 2020. The business, now called Cytiva, is a standalone operating company within Danaher's Life Sciences segment. Sallie transitioned to Cytiva at close and is now the HR integration leader for the business. 

“If you think about what the business needs for Day 1, they have to be able to accept a purchase order, invoice a customer, ship a product, and of course pay the employees. There are a lot of things that can be figured out after close, but payroll is not one of them.”

Show Notes:

0:00 Introduction

1:08 Sallie’s background

2:44 The role HR plays during a divestiture

3:43 The process of moving employees

5:45 Center Of Excellence definition

6:50 Legal entity structure’s impact on the deal

11:40 Multinational teams

13:04 What goes into payroll and benefit agreements

18:01 Transparency when moving people

30:55 The sell process and accommodating buyers

36:04 Day 1 and what could go wrong

38:43 Typical length of time for a carve-out

39:57 What goes into a communication plan for a divestiture

50:52 The biggest challenge in the whole process

52:30 Craziest thing Sallie’s seen in M&A

56:00 Closing remarks and end credits

Previous Episode
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 “The first thing we talk about is understanding the very specific products or assets being sold, and then we identify the people around that.”

HR’s involvement during a divestiture

On this episode, Kison speaks with Sallie Cunningham about how to plan a divestiture from HR’s perspective. Together they discuss the process of moving employees, how to approach ringfencing, and what Transition Service Agreements (TSAs) are. Sallie also explains what the key materials HR must have when it comes to preparing for due diligence during a divestiture and which transition records are required for HR to gather.

At the time we recorded this podcast, Sallie was the HR Executive and M&A leader for GE Corporate, where she was leading the HR workstreams for the sale of GE Healthcare's Biopharma business to Danaher, which closed on March 31, 2020. The business, now called Cytiva, is a standalone operating company within Danaher's Life Sciences segment. Sallie transitioned to Cytiva at close and is now the HR integration leader for the business. 

“If you think about what the business needs for Day 1, they have to be able to accept a purchase order, invoice a customer, ship a product, and of course pay the employees. There are a lot of things that can be figured out after close, but payroll is not one of them.”

Show Notes:

0:00 Introduction

1:08 Sallie’s background

2:44 The role HR plays during a divestiture

3:43 The process of moving employees

5:45 Center Of Excellence definition

6:50 Legal entity structure’s impact on the deal

11:40 Multinational teams

13:04 What goes into payroll and benefit agreements

18:01 Transparency when moving people

30:55 The sell process and accommodating buyers

36:04 Day 1 and what could go wrong

38:43 Typical length of time for a carve-out

39:57 What goes into a communication plan for a divestiture

50:52 The biggest challenge in the whole process

52:30 Craziest thing Sallie’s seen in M&A

56:00 Closing remarks and end credits

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