In response to a rapidly evolving economy and a desire of corporations to “focus” resources (capital, time, strategy) on the core business, carve-out transactions have become more commonplace. In 2013, divestitures represented 48 percent of all transactions, compared with 45 percent in 2011 and only 40 percent from 1990 through 1999 (see the 2014 M&A Report, BCG report, September 2014). While carve-outs can be advantageous propositions for parties on both sides of the negotiating table, they are among the most complex M&A transactions.
An acquirer must consider time-consuming legal complexities; pre-separation analysis and planning; the transfer of key shared service functions, such as HR, finance and accounting, and IT; and the impact the separation could have on employees. But the question remains: How can a company preparing for a carve-out mitigate those challenges and increase the probability of a successful separation?
The answer is by engaging an experienced carve-out team, which can leverage the full breadth of its combined experience and capabilities not just to do the job but also to do it right. West Monroe Partners and ADP have joined forces to do just that—help mitigate the risk of interrupting employees on Day 1 and accelerate time to value for carve-out transactions.