Divestiture = Less Work, Right? Wrong!

by | Last updated Aug 22, 2018 | Aviation, Logistics | 0 comments

Divestiture = Less Work, Right? Wrong!

Often when a Divestiture occurs at a company the initial thought is that there will be less work.  However, during the transition phase and for a few months after the divestiture, the workload is actually ramped up for everyone in the Accounts Payable department.   Identifying all services and invoices that belong to the locations that are being transitioned can be a monumental task and timing is crucial to ensure that all services are transitioned at the appropriate time.

 

Adding to the time sensitive work is the need to identify those services that are under a corporate contract that must be moved to stand-alone services.  This is something like “untangling the spaghetti” because often time the corporate contracts for telecom and wireless invoices are ambiguous with service details.  These ambiguous telecom invoices must go under the microscope to identify each sub account number and service address to ensure that the appropriate services are moving to the new company.

 

Problem:

When it came time for the divestiture of over 100 locations, the initial anticipation of a lightened workload became a pipe dream when their Accounts Payable department found out that they would have to support the locations for an additional six months, while the purchasing company took over the services.  A multinational aviation services company with over 500 locations had already offloaded the management of the telecom, wireless and utility invoices to RadiusPoint, so utilizing the Divestiture services was a no brainer.

 

Solution:

RadiusPoint established a Project Manager to provide reporting that identified all of the locations, account numbers and invoices, including those that were attached to corporate contracts.  The RadiusPoint team was able to contact each vendor with the end service date and also assisted the acquiring company with the Transfer of Liability documents.

 

Result:

Having RadiusPoint manage the locations in the Divestiture process saved this Accounts Payable team over 575 man hours.  Including knowledgeable people on the Divestiture team ensures that the process will be completed efficiently and on time.

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Divestiture = Less Work, Right? Wrong! Updated: Last updated Aug 22, 2018 By: Sharon Watkins