OraPharma: A Carve Out Case Study
Substantial carve-out management experience enables a newly divested entity to establish its own systems and operations—and do so faster than expected.
West Monroe provided complex and comprehensive program management, covering all facets of operational and IT transition, and completed the carve-out transition ahead of schedule and with a transition services agreement cost savings of more than $200,000.

OraPharma is a specialty pharmaceutical company that develops and commercializes products that improve and maintain oral health.

Standing up an independent business.
Formerly a division of Johnson & Johnson, OraPharma was acquired by a private equity firm and established as a new, stand-alone business with its own leadership and workforce, business processes, and IT infrastructure.

To implement the operational and IT carve-out recommendations developed prior to closing, and do so within the terms of the transition services agreement (TSA), OraPharma and the private equity investor turned to West Monroe Partners for assistance. West Monroe provided valuable operational and IT due diligence during the deal’s early stages. In addition, it offered substantial carve-out experience and a strong track record for helping similar manufacturing organizations become successful independent businesses.

Coordination across functions.
West Monroe Partners provided post-close program management across all activities related to people, processes, and technology—working closely with the key functions involved, including:

  • Legal
  • Human Resources
  • Finance
  • Quality and Regulatory
  • Research and Development
  • Operations
  • IT Applications & Infrastructure
  • Document Management
  • Workplace Services

Establishing sound, effective operations.
To facilitate the new entity’s core business operations, West Monroe Partners worked with OraPharma to design processes and implement the right supporting technology. This included adding several new modules to the company’s enterprise resource planning (ERP) system and implementing new business requirements in other key systems, such as:

  • Quality Management
  • Human Resources/Payroll
  • Time & Attendance
  • Travel & Expenses

Additionally, West Monroe Partners transferred selected IT assets and developed OraPharma’s new infrastructure, including personal computers, servers, routers, telephony, networks, cloud solutions, and other elements. West Monroe also moved the company’s data center to a co-located facility to enable operational continuity.

Efficient execution produces savings.
With West Monroe Partners’ strong program management support and guidance in establishing independent operations, OraPharma and its private equity investor completed separation activities ahead of schedule—and saved more than $200,000 in TSA costs in the process.

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