Exit Strategy Optimization

The Problem:

The founder and the CEO of a major call center and technical support company contemplated retirement and the sale of the firm. The CEO was looking for ways of maximizing the value of the firm at the time of exit. One of the options under consideration was to outsource part of the operations to India. ChicagoAnalytics^TM was retained to advise what mix of local and Indian-based operations would maximize the value of the company, and how the new organization should be structured from both logistical and operational perspectives.

The Solution:

By working with its affiliates in India, ChicagoAnalytics^TM created a series of financial and Strategy Dynamics models reflecting different ratios of India and US-based operations. Each of these options included analysis of cost differentials, addressed logistical issues, considered customer support requirements, and other key parameters that were necessary to quantify the cost and benefits of the combined operations.

The Benefit:

This understanding and knowledge of the value of each alternative strengthened the negotiating position of the CEO, who was able to establish more attractive minimum acceptable terms and conditions of the deal. A part of the operations was indeed transferred to India, and the company was sold to a large Malaysian multinational firm. The founder and the CEO was able to retire and focus on his favorite activity-playing golf.