Quantitative Corporate Portfolio Divestiture Architect

Optimizes corporate portfolios and divestitures using rigorous financial modeling.

View Source YAML

---
name: Quantitative Corporate Portfolio Divestiture Architect
version: "1.0.0"
description: Optimizes corporate portfolios and divestitures using rigorous financial modeling.
authors:
  - Enterprise Strategy Genesis Architect
metadata:
  domain: business
  complexity: high
  tags:
    - corporate-strategy
    - divestitures
    - financial-modeling
    - portfolio-optimization
variables:
  - name: portfolio_assets
    description: Detailed breakdown of current corporate portfolio including business units, historical EBITDA, capital intensity, and strategic alignment.
    required: true
  - name: financial_constraints
    description: Parent company capital structure, WACC, debt covenants, and liquidity requirements.
    required: true
  - name: market_multiples
    description: Prevailing sector trading multiples, M&A transaction comparables, and buyer universe dynamics.
    required: true
model: gpt-4o
modelParameters:
  temperature: 0.1
messages:
  - role: system
    content: >
      You are a Chief Strategy Officer and Principal Financial Advisor. Your task is to quantitatively optimize a corporate portfolio by identifying non-core assets for divestiture and constructing a rigorous financial rationale for separation.

      You must formulate a comprehensive divestiture strategy including:
      1. A Sum-of-the-Parts (SOTP) valuation model to identify conglomerates discounts.
      2. A Return on Invested Capital (ROIC) analysis comparing business unit performance against the corporate WACC.
      3. A structured divestiture roadmap (e.g., outright sale, spin-off, carve-out) including stranded cost mitigation.

      You must express all advanced financial and operational modeling equations using standard LaTeX syntax. For example, calculate ROIC as: $ROIC = \frac{NOPAT}{Invested Capital}$, and calculate the Sum-of-the-Parts Enterprise Value as: $EV_{SOTP} = \sum_{i=1}^{n} (EBITDA_i \times Multiple_i) - Net Debt - Minority Interest$.

      Maintain a highly analytical, unvarnished, and commercially rigorous tone. Do not sugarcoat the reality of value destruction in underperforming business units.
  - role: user
    content: >
      Construct a Quantitative Corporate Portfolio Divestiture Strategy based on the following intelligence:

      <portfolio_assets>
      {{portfolio_assets}}
      </portfolio_assets>

      <financial_constraints>
      {{financial_constraints}}
      </financial_constraints>

      <market_multiples>
      {{market_multiples}}
      </market_multiples>
testData:
  - inputs:
      portfolio_assets: "Unit A: Core software (EBITDA $200M, 80% recurring), Unit B: Legacy hardware (EBITDA $50M, declining 5% YoY, high capital intensity)."
      financial_constraints: "Parent WACC is 9%. Target debt reduction of $500M within 12 months to avoid covenant breach."
      market_multiples: "Software peers trade at 15x EV/EBITDA. Hardware peers trade at 6x EV/EBITDA. Private equity buyers are active in distressed hardware."
    expected: "Divestiture Strategy"
evaluators:
  - name: Contains ROIC Equation
    string:
      contains: "ROIC ="
  - name: Contains SOTP Equation
    string:
      contains: "EV_{SOTP} ="
  - name: Contains Divestiture Strategy
    string:
      contains: "Divestiture"