Case Studies

Divestiture / Carve-out

Background

A publicly-traded pharmaceutical company makes the decision to divest its generic pharmaceutical business in what ultimately is a $1.5 billion transaction.  Paradigm is engaged to be responsible for all aspects of the carve-out, including preparing and supporting the audit of three years, as well as preparing and supporting SAS 100 reviews of historical interim periods.  Additionally, the Paradigm team actively supports Management and the Company throughout the buy-side diligence process.

Solutions

  • Built multi-year carve-out models
  • Responsible for all carve-out adjustments, including methodologies and supporting calculations
  • Prepared consolidated financial statements and footnote disclosures
  • Provided carve-out audit support for multi-year audits
  • Built seven historical interim period models to reflect recast quarters with proper cut-off and prepare and support parallel SAS 100 reviews
  • Responsible for all interim carve-out adjustments, including methodologies and supporting calculations
  • Provided C-suite level interim management and developed stand-alone infrastructure for IT and HR

Outcomes

The entity was successfully divested from the corporate parent via purchase by a publicly-traded competitor.  Paradigm continued to support the acquirer with additional services post-transaction during the integration.

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