How we helped

In a strategic move to enhance shareholder value, a $3 billion global gaming company engaged AlixPartners to lead a transformation, culminating in the divestiture of two key business units, each with $1 billion in revenue.

Faced with strong market interest in the two businesses, the parent company opted for a nuanced approach, simultaneously pursuing trade sales and public offerings for both. AlixPartners played a crucial role in advising and executing a complex dual-track strategy to ensure both sides were incentivized for the best possible outcome.

With our help, the client was well-equipped to own and manage the entire process without handing the keys over to a single bank to control the outcome. Executing the transformation as a carve-out, the parent company was able to design a debt structure favoring the retained entity while preserving the option to maintain a significant long-term interest in the spun-off entity.

AlixPartners acted as an extension of company management to advise on the process, manage all parties, and drive key workstreams to maximize value.

The team orchestrated collaboration among 14 external parties, including five banks, six law firms, and two accounting firms. As a result, we helped the client achieve a ~6x revenue multiple on the sale, while also maintaining the uninterrupted operation of the gaming company.