Divestitures and Carve-out
Carve-outs are very common in the current deal environment. They are by nature, more complex than the sale of a fully standalone business. The complexities involved in a carve-out depend on the degree of integration of the business to be divested. Divestitures can improve the overall value of a business portfolio — as well as the ability to slow it down considerably if not well planned and executed.
We work with companies to ensure the carve-out is as smooth and value-enhancing after considering the costs, practicalities and potential risks of operational separation. Our team provides end-to-end support from conceptual planning through the project management office to the successful operational implementation of carve-outs – regardless of whether you are on the buy or sell side. We enable companies to understand operational separation challenges early in order to control the separation process and accomplish the deal objectives.
- Divestiture planning and support to help prepare for separation and/or sale
- Developing a standalone operating model for the divested business which is a fit for purpose and cost-efficient
- Preparing robust and executable separation plans across operations and IT, which safeguard the core business
- Defining flexible transitional arrangements to ensure the business can operate from Day 1 - advise on the scope, perimeter and duration of TSA's
- Stranded cost assessment and optimisation of the remaining business
- Carve-out due diligence and standalone cost assessments
- Review management's separation plans: Robustness of the one-off, ongoing and standalone cost estimates, interdependencies and separation activities including Day 1 readiness and capability building to migrate off transitional support on behalf of bidders