How SPX Drives Value

Operational Disentanglement

Operational Disentanglement is the practice of disconnecting a divested entity from the parent, operationally and technologically. This process can happen at the close of the transaction or it can take place months after the divestiture is executed. When operational disentanglement is expected to extend beyond the deal’s transaction close date, the method of interim operations should be captured in a Transition Services Agreement (TSA).

SPX has experts that can design the way that the parent and a divested entity will operate starting on the transaction’s close date (also known as the beginning of the TSA period). Due to the fact that the divestiture candidate has most likely been a part of the parent for some time, it is important to design and negotiate an effective TSA so that both parties understand how they are expected to operate when the divestiture candidate is sold. Thus, SPX also plays a role in helping the divestiture candidate “stand up” its business operations in order to enable the separation of enterprises as much as possible when the transaction closes.

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