Failure to evaluate the costs of operational separation and prepare clear terms for transition can risk under-pricing a deal and leave buyers and vendors exposed to significant unforeseen costs. We have experience of carve outs from both buyer and vendor perspectives – and can help to prepare and implement robust, executable and cost-efficient arrangements for carve-out, transition and hand-over.
Carve-outs are a growing feature of the current deal market. They are by their nature more complex than the sale of a fully standalone business. Our services are geared to making sure the carve-out is as smooth and value-enhancing as possible. We understand the costs, practicalities and potential risks of operational separation. We understand both vendor and buyer perspectives and their impact on the value of the deal.
If you’re a vendor, we can help you to assess the full costs of the carve-out and transitional support and the implications for the expected returns from the deal. We can also help you to anticipate bidder requirements and hence sustain competitive tension in the auction, which can accelerate the deal process and maximise the proceeds. We ensure separation plans can be delivered, that business disruption is minimised and that there is an appropriate and executable level of support during the transition. We also advise on how to make operations more efficient following the separation.
If you’re an acquirer, we provide the same assurance of certainty, and deliverability plus challenge on efficiency through carve out diligence. This includes helping to evaluate and challenge the cost and effectiveness of the transition plans and improve operational efficiency, both during the transition and as a standalone business. We will work alongside you to implement these plans effectively.