Carve-out & divestment
Carve-out & divestment
In certain situations, the full or partial divestment of a business unit is the best course of action for a company. Not only can it ensure every asset is a strategic fit, but it can also deliver shareholder value.
However, such projects are complex and require expert guidance. Our global team of specialists can deliver your carve-out or divestment project and help you and your business achieve your long term goals.
Our team of expert practitioners can support you in your plans to sell or acquire a business unit that is part of a wider organisation, whether the business unit in question is a separate legal entity or requires being ‘carved out’ of a larger entity.
We analyse and repackage financial information to make it relevant to the transaction perimeter of the carve-out. Our team, will support you with:
- Identifying the assets and liabilities that will need to be included in the transaction scope
- Defining the carve-out methodology, including the allocation of central costs, the accounting principles applied, and the normalisation adjustments needed for the business unit as a standalone entity
- Preparing pro forma financial information and supporting documentation in conjunction with your financial and operational teams
- Assessing standalone profitability by analysing the impact of the carve-out on your future organisation, with a focus on the evolution of the cost structure and revenue generation
- Identifying and approaching potential buyers of the standalone entity
- Defining the financial clauses of legal documentation, in conjunction with your legal advisors, through drafting support for the financial clauses of the Shareholders' Agreement, Transitional Service Agreements, liability guarantee clauses and other documentation relating to the carve-out
Our deal specialists help you to navigate the often complex, resource intensive and difficult challenges you will face during a carve-out or divestment process, always with a focus on maximising value.
With our vast experience advising on carve-outs and divestments, we will provide you with tailored guidance every step of the way, and help you implement an executable plan to ensure a smooth transition.