Carve-outs and Divestitures

Experts predict that corporate divestiture activity will continue to increase. A sluggish economy and a growing interest in refocusing business operations will fuel spinoffs through 2016 and beyond. 

As activity increases, private equity and strategic buyers will need assurances that they can execute carve-outs as quickly as possible without putting the business at risk or paying exorbitant fees. That’s where we come in. 

Each year, West Monroe delivers over 40 carve-out projects, managing all phases of the carve-out lifecycle - from sell-side readiness through optimization. We’ve also been called upon to provide expert testimony and background for high-profile, multi-million dollar divestiture lawsuits. 

Our solutions
Our consultants bring a unique blend of industry, operational, and technical expertise together to help you tackle carve-outs successfully. We manage carve-outs from pre-divestiture through value creation -  with minimal impact to current business operations.

Clients value our extensive “roll up our sleeves” execution and practitioner experience with middle-market companies. In addition, our business and technology practices allow West Monroe to be a one-stop shop that can provide:
  • Interim CIO and separation management office (SMO) leadership for the entire cross-functional carve-out program 
  • ERP clones, migrations and implementations
  • Salesforce.com CRM clones, migrations and implementations 
  • HRIS/payroll systems implementations
  • IT infrastructure migrations to private and public clouds (AWS, Microsoft Azure and Office 365) 
  • Cybersecurity strategy, implementation and virtual CISO
  • A seamless transition from the implementation team to our Performance Services practice to “run” the IT and security functions 
Our pre-packaged carve-out offering (CORE) provides the greatest probability for a successful carve-out transaction and the quickest means to focus on value creation to meet the investment thesis objectives. 
  
Interested in learning about how to further reduce carve-out timelines, costs and risk? Our CORE solution is a pre-packaged selection of service providers and technology platforms to help you get to value creation quicker.

Interested in learning more? Please contact the leader of our carve-out and divestiture practice Keith Campbell.
Post-merger Integration

Transactions happen fast and with what feels like thousands of competing priorities, many integration plans aren’t well planned or executed. Transition, turnover and varying stakeholder demands are only a few of the complications that can derail your integration efforts.

It’s not too late
West Monroe specializes in helping companies that have gone through previous mergers and acquisitions:

  • Capture pricing synergy through customer and vendor contract negotiations 
  • Identify operational efficiency and business process optimization to increase productivity 
  • Consolidate/integrate facilities, departments, business applications and infrastructure 
  • Define and implement target operating models 
  • Outline reporting structure and define organizational roles and responsibilities

Measurable results
Our team of industry, operational and technical experts knows where to look to maximize synergy capture and alleviate organizational issues.

When integrating two or more organizations’ processes and systems, West Monroe Partners utilizes an approach that considers the equally vital areas of strategy, people, process, and technology. We have experience with migration and consolidation efforts of all sizes. The net result: you can focus on achieving the benefits and synergies that drove the pursuit of the acquisition in the first place.

For example, we helped a client save $13 million after several acquisitions by improving production efficiency from 50 percent to 75 percent, reducing order processing delays by 90 percent and eliminating redundancies in processes and the underlying systems, thus cutting costs, improving reliability, improving scalability and reducing risks.

Have your transactions reached their full potential to advance your organization?

Transaction Advisory

Our consultants support you across the transaction lifecycle, focusing on the following core areas:

  • Merger & Acquisition Readiness Assessment: Assessing the resource, operational and technology readiness of the organization, evaluating the scalability of the organization’s assets to support a transaction.
  • Due Diligence: Evaluating alignment with the strategic objectives, determining organizational, operational and IT impacts, identifying transaction risks, synergies, and integration costs.  
  • Integration Planning: Identifying and detailing the right approach and action plan necessary to combine the organizations.
  • Integration Execution: Managing and performing integration execution from Day 1, up to and through the integration.
  • Steady State: Optimizing the integrated organization and managing any ongoing performance improvement needs.

We seek to understand your objectives, then we help you deliver on them.
Our consultants partner with you to understand the strategic business rationale so that we can help you deliver on your investment thesis. Combining our specific industry expertise with the depth of our transaction experience, we have written comprehensive M&A playbooks that guide banks, credit unions, healthcare organizations, manufacturers and distributors through each phase of the transaction lifecycle.

Is your transaction poised for success?

CORE: Carve-out Readiness & Execution

Our network of partners across the key business functions (HR, Finance & Accounting, and IT) allow our clients to easily fill leadership gaps and to quickly stand-up new processes and technology.  Our CORE package of proven service providers and technology solutions will help you minimize risk, decrease TSA timelines and lower costs that improve the likeliness of a successful carve-out and allow you to get to value creation and business optimization more rapidly. 

Our seasoned resources understand the complexities of carve out transactions, can provide Interim Leadership, and simultaneously possess deep functional knowledge (Supply Chain & Operations, IT, HR, Finance & Accounting, Quality & Regulatory).

We have pre-selected capabilities/partnerships in the following areas, but can customize to your individual needs:

CORE Execution Partners

Human Resources, Finance & Accounting 
  • Risk Management, Employee Benefits, Insurance
  • Interim Finance & Accounting Leadership (CFO, Treasurer, etc.) / Project Work
  • Interim HR Leadership (VP of HR) 
Cloud-based Technology Offerings:
  • ERP & ERP “Clone” and Data Transformation Tools
  • Private and Public Cloud Data Centers
  • Human Capital Management / Payroll Technology Vendors
  • Travel & Expense Management
Interested in learning more? Please contact the leader of our Carve-Out Practice: Keith Campbell.
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