A critical challenge faced by a divested company as it separates from the parent is how to obtain the infrastructure services it needs to operate efficiently in a newly independent state. Infrastructure options range from extensive Transaction Service Agreements (TSAs) with the parent company to establishing in-house services, or even outsourcing critical business functions. The trick is to find the right degree of separation from the parent to minimize risks of disrupted operations, escalating operational costs, dissatisfied customers, confused employees — precisely when the divested company’s performance is under greatest scrutiny from the market.

Read the attached article to learn five important steps that can help maintain operational continuity for a divested business, including:

1. Defining the scope of processes and functions that will be affected by the divestiture.
2. Asking the right questions to determine the appropriate level of involvement with the parent company.
3. Avoiding the all-or-nothing trap with the parent company’s services.
4. Preparing for negotiations with the parent company’s services.
5. Considering a second opinion to help assess your service sourcing options.