Global Industrial Technology Company — Portfolio Rewrite: Six-Year Sell-to-Buy Transformation
A global industrial technology company with a market capitalization over $100 billion and leading positions in different industries. The portfolio mixed robust digital franchises with non-core, capital-intensive units, while investor expectations were shifting toward recurring software and service economics. The CEO engaged RefineValue to run a multi-year sell-to-buy program: exit non-core businesses, acquire future-core, and integrate at speed while separating cleanly—without base-business drag.
Portfolio Rewrite: Outcomes at a Glance
Mandate & Constraints
Build a thin, senior operating system the CEO runs—with supervisory board oversight via the chair—to execute a multi-wave sell-to-buy program over ~36 months. For every move, lock Day-1/30/60/90/100 scope and owners in advance; stand up integration and separation factories (IT/OT, SAP/ERP, cyber, HR) without base-business drag; enforce a buyer reputation & license-to-operate rubric (ESG and safety record, export-control/sanctions exposure, public-customer sensitivity, labor relations) so exits are reputation-safe by design. Hold a rating-safe capital blueprint (corridor, net-debt ladder, liquidity runway) with pre-approved redeploy theses and a proceeds-redeploy standard of ≤ 180 days (median ≤ 150). Maintain public-view discipline with a 24–48h leak-to-ad-hoc staircase and an investor KPI blueprint (ARR, software attach, service mix, order quality) to support the two equity narratives (industrial software scale-out; infrastructure resilience).
Multi-jurisdiction antitrust/FDI/export control (EU/US/UK/Asia) with no pre-close integration; clean-team MNPI controls and contemporaneous records. Co-determination and works councils (incl. EWC) synchronized to the master calendar; where required, works agreements/social plans to cover stranded-cost takedown. Rating and covenant headroom preserved throughout; TSA exit clocks set ex-ante (critical services ≤ 6 months; full exit ≈ 8 months median). Public-sector and critical-infrastructure customers heighten disclosure/continuity risk; cyber and product-safety thresholds are Day-1 non-negotiables. Governance cadence: owner = CEO; oversight = supervisory board (chair); weekly CEO gate to cut decision latency and protect strategy time.
What We Did
Built a CEO-led operating system with supervisory board oversight
We designed a thin senior sell-to-buy operating model that the CEO manages weekly and the supervisory board monitors quarterly. This model is anchored in a compact between the CEO and the supervisory board. A single CEO gate governs every move on 90-day stacks. Day-1, 30-, 60-, 90-, and 100-day scopes, owners, and budgets are approved in advance. We installed a decision-latency meter and a strategy-time guardrail, making management responsible for delivery.
Sequenced the perimeter with reputation guardrails
We developed the buyer reputation and license-to-operate rubric, establishing red lines regarding environmental, social, and governance (ESG) issues; export control and sanctions; public-customer sensitivity; and labor relations. We also established preferred pathways in advance to reduce headline risk. Management ran the buyer processes, and we cleared choices and evidence at the CEO level.
Made capital move—inside the rating corridor
We developed the rating-safe capital blueprint, which includes the corridor, net-debt ladder, and liquidity runway. We pre-approved redeploying these with proceeds within 180 days, with a median of 150 days. Agencies and covenants were pre-briefed, and sequencing decisions were made at the CEO gate based on options with quantified trade-offs.
Integrated fast; separated cleanly—by design
We defined the standards and charters for the integration and separation “factories,” including RACI, the first 60-day value levers, the customer promise guardrails, the TSA catalogs and exit clocks, the SAP/ERP carve, the data/identity split, the OT/IT segregation, and the Day-1 cybersecurity measures. Line owners executed these standards, and we verified Day-1 and 100-day readiness at the gates by challenging exceptions.
Cleared the path on approvals and co-determination
We established the clearance calendar for competition, foreign direct investment (FDI), and export control across the EU, US, UK, and Asia. We synchronized co-determination and European Works Council information and consultation with the master plan. Counsel and management conducted the filings and meetings, and we confirmed that the evidence met the gate standard.
Controlled the outside view and the equity narratives
We rehearsed our response to a leak and developed an ad hoc plan for 24–48 hours. We aligned communications with customers and suppliers and published an investor KPI blueprint (ARR, software attach, service mix, order quality, and on-time delivery) to support the narratives of industrial software scale-out and infrastructure resilience. The investor relations team conducted outreach, and we reviewed scripts and parity-of-information logs.
Kept the base business on its promise
Run-rate operations were ring-fenced with a customer-promise grid, and frontline capacity was safeguarded. The OS remained lean and efficient. Operators stayed in their lanes while management executed, and we established guardrails and verified evidence at gates. Once the wave cadence was established, we handed it over.
Results
Wave 1 (year 1): 2 exits, 1 buy — proof of system.
All competition, foreign direct investment (FDI), and export control clearances were completed as planned. There were no disclosure corrections, and leaks were addressed within 24–48 hours during drills and live use. Day-1 readiness was ≥90% at each close, and 30-, 60-, and 90-day adherence was ≥95%. The median integration time to steady state is 120 days or less. There were no Tier-1 safety or critical cyber incidents or service-level breaches lasting more than 24 hours for critical infrastructure customers. Decision latency decreased by 25–35% compared to the baseline, and strategy time accounted for 40–50% of the executive plenary. Proceeds are redeployed within 180 days (median: 150 days) to pre-approved theses, and the rating is affirmed with a stable outlook. Reputation-safe exits: There were no adverse headline events, and acceptance was recorded with works councils and key public customers.
Wave 2 (years 2–3): 1 exit, 2 buys — velocity and scale.
Gate adherence was ≥95% across moves. TSA critical services exited in six months or less, whereas the full TSA median is approximately eight months. The stranded-cost plan was executed at least 80% within 12 months of each exit. Vendor/footprint consolidation delivered synergies ahead of schedule and contained dis-synergies within acceptable limits. Export-control checkpoints (industrial controls and mobility-related dual use) were cleared without calendar shocks. Co-determination and European works council packages ran according to the master calendar. Top-customer retention was at least 98%, and critical-role retention was at least 95%. Early software adoption and an increased service mix are evident within the acquired perimeter.
Wave 3 (years 4–5): roll-in + selective tuck-ins — finish and reset.
The final TSA exits were completed as planned, and the KPIs were rebalanced for the new scope. The recurring/digital mix increased by a mid-single digit amount, and the initial ROIC exceeded the WACC on the reshaped portfolio during the first post-close quarters of each move. The coverage reset was completed quickly. Initial notes cited the investor KPI blueprint and established two distinct equity narratives: industrial software scale-out and infrastructure resilience. Throughout, the base business maintained the customer-promise grid.
Year 6: consolidation and handover.
Operating cadence has fully transitioned to management, and the CEO gate is maintained at a slower pace. The back book has been integrated, and the remaining stranded cost items have been retired on schedule. Under the oversight of the supervisory board, the governance artifacts (Gatebook, buyer-reputation rubric, and KPI blueprint) were embedded as business-as-usual standards.
Program-level (6 years): CEO-led, board-oversighted transformation.
Perimeter moves were completed in seven locations, with three in the EU, two in the US, and two in the UK, as well as one in Asia. Clearances were on plan, and there were no disclosure corrections. Decision latency and strategy time were both sustained at 25–35% and 40–50%, respectively. Proceeds were redeployed within 180 days (median: 150 days), and rating headroom was maintained without any covenant breaches. Day-one readiness is at least 90% for all closings. The median integration time is 120 days, and the TSA critical time is six months, with a full time of eight months. Top-customer retention is at least 98%, and critical-role retention is at least 95%. The equity story is shifting toward recurring software and resilient infrastructure, delivered with a lean operating model.
Why it Worked
