CARVE-OUT & DIVESTITURE
Plan and Execute a Successful Divestiture
Spinning off or selling a business unit, product, or service line can provide cash, improve earnings stability, and increase your focus on key assets. Short- and long-term success hinge on understanding the desired future-state relationship between the separate entities and any ongoing involvement in the carved-out subsidiary’s future operations. Developing clear transition service agreements over shared resources helps decrease complexity.
Understanding Key Drivers of Investor Value
Carving out and selling a business can be complex; however, given proper planning, cross-functional collaboration, and a well-thought-out approach, it can unlock the ability to negotiate higher price points and achieve a stronger degree of buyer confidence.
Common Areas of Value Leakage
- Failure to initiate early planning
- Unclear target operating model
- Bottlenecks in decision-making process
- Overwhelming competing priorities
- Key resource turnover
- Complicated integration required of buyer
Our Approach
From preparation to post transaction, MorganFranklin employs a carve-out approach that focuses on long term value and confidence post separation to maximize value for the selling entity, The Carve-Out entity, and Newco investors.
Our differentiator is in how we deliver. Our experienced teams have a powerful mix of business expertise that is unmatched in the marketplace. We will draw from our extensive library of tools that serve as accelerators to provide scalable solutions, creating value for our clients.
- Target Operating Model
- Quality of Earnings
- Carve-out Financial Statements
- Transition Services Agreements (TSA)
- Post Separation Support
- IT Infrastructure Separation
- Change Management
- Separation Management
