Carve out and divestment support

Managing the separation to maximise deal value 

Whether divesting part of your business or targeting a disposal, a Carve Out process provides the opportunity to challenge and optimise the Carve Out entity's operating model. Our Carve Out expertise, can help you determine the optimal way to separate and rapidly realise maximum deal value, whether you are a buyer or seller.

Our flexible and rigorous Carve Out approach focuses on what really matters:

  • Developing a fit for purpose, cost efficient, standalone operating model;
  • Preparing robust and executable separation plans across operations and IT that safeguard the core business;
  • Defining flexible transitional arrangements to ensure the business can operate from Day 1.

We have experience of divestments ranging from standalone businesses, to the most complex Carve Outs, across a range of sectors, advising on the sell side and buy side. We understand both vendor and buyer perspectives and their impact on value to maximise your ability to deliver deal value.

To find out how our insight and approach can help you sell or purchase part of a business being carved out, please click below:

To find out more about our comprehensive range of Carve Out and Divestment Support services, please feel free to contact Hein Marais or Andrew Broad.

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Divestment Support (helping you prepare for sale) 

We specialise in supporting vendors to prepare robust separation plans which stand up to the rigours of due diligence and maximise sale proceeds in the following areas:

  • Identification of inter-company dependencies and separation risks;
  • Definition of an optimised standalone operating model for the Carve Out entity;
  • Optimisation of the vendor's remaining core operations;
  • Definition of an efficient IT environment to support the standalone business plan, along with subsequent implementation support for the separation plan;
  • Advice to define the optimal Transitional Service Agreements (TSAs) and Long Term Arrangements (LTAs) required between the Carve Out entity and Vendor; and
  • Support throughout the sale process (including bidder meetings).

To find out more about our comprehensive range of Divestment Support services, please feel free to contact Hein Marais or Andrew Broad.

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Carve Out Due Diligence 

On behalf of bidders we review management's separation plans including the following areas:

  • Robustness of the one-off, ongoing and stand alone cost assumptions/estimates;
  • Ability of the IT systems and infrastructure to support the stand alone business;
  • Completeness and flexibility of transitional arrangements;
  • Robustness of separation plans, including Day 1 readiness and capability building to migrate off transitional support .

To find out more about our comprehensive range of Carve Out Due Diligence services, please feel free to contact Hein Marais or Andrew Broad.

For more information on Operational Due Diligence or Financial due Diligence please click here.

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Carve Out Planning and Implementation 

Working alongside the management team, we develop detailed separation plans covering the period's pre and post Day 1 (separation point). Our depth of Carve Out experience ensures that critical Day 1 risks and actions as well as key steps to establish the standalone capabilities post TSA support are managed, minimising business disruption and allowing management to focus on business as usual.

We provide a structured implementation approach that flexes with client needs, enabling effective management of the separation including:

  • Detailed status reporting,
  • Issue and risk management, and
  • Structure and discipline within the transition management office.

To find out more about our comprehensive range of Carve Out Planning and Implementation services, please feel free to contact Hein Marais or Andrew Broad.

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Carve Out Financials 

Advising management on the preparation of Carve Out Financial statements to meet regulatory requirements, taking into account the optimum way these statements should be presented to investors.

To find out more about preparation of Carve Out Financial statements, please feel free to contact Hein Marais or Andrew Broad.

For more information please visit our London Capital Markets Group web pages.

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