Divestitures and Carve-outs
A winning strategy and experienced resources are essential for success.
Divesting or carving out a percentage of your organization’s assets can accomplish a variety of goals – raise needed capital, increase management focus, realize untapped value, reduce debt, position the subsidiary for an eventual change in control and more.
The transaction has, however, many moving parts to manage and organizational effects that need to be considered, analyzed and weighed before you get to closing. A divestiture or carve-out is a complex transaction that typically takes months to complete once you have an interested party.
Strategy and experience count
Thorough preparation — including a carefully constructed strategy, rigorous due diligence and precise execution by experienced resources will help get you to closing more quickly. Resources who know what financial and operating information are important to buyers and how the information should be presented.
Using our years of transaction experience, we’ll help you avoid potential transaction pitfalls by:
- Preparing reports compliant with U.S. GAAP and SEC financial standards – and, if you have an international buyer, reports that are International Financial Reporting Standards-compliant
- Identifying and developing support for adjustments and add-backs that are designed to maximize value
- Providing assistance to develop carve-out and stand-alone cost structures, including transition services agreements
- Coordinating and satisfying data requests and operating a data room
- Assisting in developing and implementing a post-divestiture integration plan
- Determining an accurate valuation range for the divestiture/carve-out candidate
- Collaborating with you to determine the most desirable deal structure and terms
