Divestiture modeling involves taking the current group, consolidated financials and converting them into something else.

Here we've got a group, excluding the subsidiary and the subsidiary. They've been split into two sets of financials. If we were doing an IPO, you wouldn't have the separate subsidiary, but instead the group would now include a non-controlling interest. You'd now have a group of new external shareholders. What happens along the way are deal adjustments, things that only occur because of the deal, and secondly, subsidiary restructuring. Maybe you've pushed some debt down into the subsidiary, or the subsidiary has paid up a dividend to the group.

The accounting treatments are going to differ for different subsidiary options, be they private sale IPO, or spinoff with or without carve-out. It's also possible to assess the post tax return generated by use of proceeds versus ROE return on.