Case Studies
Major Fund Manager: Sale of Client Portfolio
Client contact: Executive Director
Parkwell staff: 1 senior consultant
Objectives and project background
A strategy review at the client meant that some 600 clients with smaller amounts of funds under management were no longer within the bank’s revised focus. It was decided that this book of business should be sold. A buyer was found and the clients were transferred in line with the bank's strategy, along with two fund managers as part of the deal.
The key objectives of the project were as follows:
- To prepare all information regarding the client base to assist in negotiations with the purchaser and to form the basis of the Sale and Purchase Agreement.
- To co-ordinate all communication with external parties including regulators and the press.
- To manage all communications with the clients who formed the deal.
- To plan and execute the process of transferring the clients’ assets and records to the purchasing bank.
- To report to senior management on the progress of the deal.
Scope & Boundaries
Key activities were as follows:
- Production of all data for the Sale and Purchase Agreement
- Managing the communication programme with clients to ensure they understood the process
- Managing the transfer process to move the client records and assets to the buyer
- Liaison with external parties such as regulators and the press
The following was outside of the scope of the project:
- Legal negotiation: this was handled by the client’s senior management
- HR issues: the transfer of staff to the buyer was handled by the client’s HR department
Deliverables were as follows:
- Full information on the client base
- All required communication to clients
- Key documentation for external communications (press releases, Q & As etc)
- A plan for the transfer identifying necessary resources had to be prepared early in the project
Key Performance Indicators were as follows:
- The Sale and Purchase Agreement to be effectively concluded
- Clients to be successfully transferred to the buyer
- Full details of the process to be available to the client’s senior management
Anticipated Benefits:
The project provided two key benefits:
- The removal of smaller clients who were no longer part of the bank’s strategy would allow the client to concentrate on the remaining core clients
- The sale of the book of business would provide revenue for the client
Critical Success Factors:
- The agreement with the buyer to be signed on schedule
- All clients to be successfully transferred to the buyer on schedule
Project Conclusion
The sale was agreed and all clients successfully transferred.