Carve-Out

Carve-Out & Divestment Strategy

Carve-out and divestment strategy: divestment candidates, carve-out execution, transition services, value maximization, programmatic divestment.

Programmatic Divestment Frees Capital for Higher Returns

Most enterprises hold underperforming businesses too long because divestment is treated as failure. Mature portfolio management uses programmatic divestment to free capital. Carve-outs (selling business unit) require disciplined execution: separation, transition services, perimeter definition, employee transition, customer continuity. Done well, carve-outs maximize divestment value.

Key Capabilities

01.

Divestment Strategy

Identify divestment candidates with value-to-alternative-owner analysis.

02.

Carve-Out Execution

Separation of BU systems, processes, contracts, people.

03.

Transition Services

TSA design, scoping, pricing, exit planning.

04.

Customer Continuity

Customer communication and continuity planning.

05.

Employee Transition

Employee transition planning with retention.

06.

Value Maximization

Carve-out timing, marketing, auction process for value maximization.

20+
Carve-Outs Run
12-24 Mo
Avg Timeline
TSA
Transition Services
4.7/5
CFO NPS

Process

01

Divestment Strategy

Identify divestment candidates.

02

Carve-Out Plan

Detailed separation plan.

03

Execute

Carve-out execution with TSA.

04

Exit

Sale process and TSA exit.

Benefits

Capital Freed

Divestment frees capital for higher-return uses.

Value Maximization

Disciplined process maximizes divestment value.

Reduced Distraction

Removes distraction from core business.

Programmatic Discipline

Programmatic divestment outperforms episodic.

Frameworks & Tools

  • — TSA design
  • — Carve-out playbooks
  • — Dual-track sale
  • — Auction process

Industries

  • — SaaS
  • — Financial Services
  • — Healthcare
  • — Manufacturing
  • — Retail
  • — Energy

FAQ

Sale to PE or strategic?
Strategic if synergy buyer exists. PE if no strategic premium. Run dual-track when possible.
TSA duration?
12-24 months typical. Beyond 24 months, both parties lose interest in clean exit.
Employee transition?
Retention agreements for key talent. Communications plan from announcement to close.
Customer impact?
Customer communications critical. Plan announcement and post-close engagement.

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