How HR Roles Plan for Divestitures
Hosted by Kison Patel
"The best advice is, when you hear them talking about a potential facility closure, winding down a business, or a carve-out of a business, you want to start the planning right then."
On this Episode
Kison speaks with Jillian Kaebel-Sisk, HR Global Mergers, Acquisitions, and Divestitures Manager at Caterpillar. Jillian's current responsibilities include corporate strategy and business development. This podcast covers how HR practitioners plan for and executive divestitures.
Kison and Jillian talk about the critical factors to consider when planning for a divesture. They also discuss carve-out and divestiture challenges, as well as TSA agreements, asset vs. stock sales, due diligence, and more.
"It is definitely harder to turn the lens upon yourself, then it is to review another target's data. Because what you don't want to happen is, you don't want the buyer to find an issue that you yourself hadn't already been aware of and at least taken steps to remediate. So there is a lot of inward looking."
00:00 Introduction and Jillian's background
01:10 HR's larger role during a divestiture
01:55 Specific planning examples
04:50 When to start planning a divestiture
06:45 Asset vs. stock sale
09:00 How local laws affect asset and stock sales
10:00 Ring fencing
12:25 Managing employees from different groups
13:23 Carve-out process
16:18 Challenges of working with unions or represented work forces
17:22 Divestiture communication plan
20:35 Key materials HR must prepare for a divestiture's diligence
24:25 Purchasing agreements
26:37 Transition service agreements
30:12 Transition records
31:30 Tips for M&A practitioners preparing for a divestiture
33:03 Closing remarks
Now available on Spotify