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 RELATED CONTENT IPOs boom with pandemic’s lasting effect on how deals get done Media Coverage, News READ MORE COVID-19: What Can Pre-IPO Companies Do? Insights, Insights - Companies READ MORE Uber to Have Task of Explaining Its Diverse Businesses as It Closes In on IPO Media Coverage, News READ MORE 1 2 Next Related Services Private Equity Services Finance Transformation Technical Accounting & Financial Reporting Risk Advisory CIO Advisory EXPLORE CONTENT Understanding Key Drivers of Investor Value Common Areas of Value Leakage Our Approach LET’S WORK TOGETHER We are experienced, engaged professionals that are highly energetic and motivated to work in challenging, high stakes environments. © Copyright 2021 | MorganFranklin Consulting | All Rights Reserved Twitter LinkedIn YouTube