In the run-up to or within the framework of M&A activities , a corporation’s business segments under discussion are often separated organizationally and thus prepared for a possible sale or reorganization. These preparatory actions should take place in a dedicated carve out-process to ensure the positive impact. The reasons for a carve-out are diverse. Strategic goals such as focusing on core competencies or streamlining portfolios often take priority. However, financial reasons (limitation of losses, procurement of liquidity) or operational optimization (e.g. restructuring of vertical integration) also play a role. It is also necessary to take account of carve-outs caused by regulatory requirements.
Carve out-processes are often extremely complex processes. The following factors are the drivers of complexity:
As part of a carve out, existing organizations, workflows and systems must be checked for their validity and optimum support both in the divested business unit and in the spun-off part. We support the spin-off in the course of the reorientation with regard to both the strategy and examination of sustainability in the individual functional areas, and all necessary steps from the planning to the design of the measures and the roll-out of the changes in the planned time frame.
We at WTS Advisory will help you achieve the goals of your carve out in a complex situation. Typically, the following goals take precedence:
A carve out-process can be divided into different phases. A phase model proven by WTS Advisory ensures a structured approach and the success of the process:
WTS Advisory provides support along the entire process. Our many years of experience in accompanying carve outs of different sizes and industries with an interdisciplinary team ensures success. Depending on the requirements of your carve out transaction, WTS Advisory offers a service package tailored to your needs.
The advantages that you gain as a result of our support are diverse and include in particular: Operational support in all phases; optimization of the sales result; preservation of own resources so that the daily business is not impaired; significantly lower project costs through structured and coordinated approach; avoidance of unnecessary follow-up costs; selective support or supervision of the entire process; smooth start of the operational business.
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