carve-out advisory services
NEA Carve-Outs advisory services are focused on minimizing operational disruption during a carve-out or spin-off to preserve and create value. From design through deal execution to Day One readiness and stand-up, we work side-by-side with owners and management.
“No matchmaking” deals – attention to detail from the beginning through closing make or break carve-outs.
We help you sell assets, line of business, or subsidiaries. We identify what is helping your core products or services to bring high yields and make sure to protect those. Then we discover assets that are less profitable. We identify any compliance or regulatory issues involved, and recommend suitable strategies to cater to them.
We try to remove the flaws and shine the business unit being divested, so that it can be a good purchase for potential buyers and help you get the optimum price. Towards this, we provide Day 1 Readiness assessment, IT Due Diligence, channel partner impact analysis and a slew of other services.
Besides optimum valuation, our other stated objective on each Carve-out deal is to reduce the time to closure. You do not want to dally with this and get more stresses. However, we don’t want you to fire-sell either. So we identify the right timing.
Throughout the whole carve-out process, we intend to be your go-to troubleshooter to manage complexities and provide guardrails.
solving the carve-out conundrum
NEA carve-out consultants guide business organizations through the complex carve-out process from end to end. Whether your goal is a trade sale, a spinoff, or an IPO, we help maximize transaction value and minimize business disruption—positioning the parent and new enterprises to thrive on day one and beyond.
- Conduct disentanglement, stand-alone and separation analyses
- Analyze Fact Pattern and develop methodology to allocate FSLI
- Develop high-level separation plan
- Support the sale process and required filings
- Support the build-out of the data room
- Perform IT due diligence
- Define scope/duration of TSA to NewCo
- Support development and drafting of initial TSA schedule and master TSA legal agreement
- Analyze associated cost/service within TSA
- Analyze Seller support requirements
- Identify and verify services included inside/outside TSA scope
- Develop detailed standalone and one-time cost models and evaluate potential stranded costs
- Establish separation roadmap Review process/system dependencies
- Operationalize TSA and establish governance process
- Assess RemainCo’s future state requirements and organization structure
- Analyze critical Day One requirements
- Align Day One and separation milestones
- Review critical contracts and licenses
- Develop communication and change management strategy
- Review requirements not in in TSA scope
- Operationalize the TSA
- Develop plan to mitigate stranded costs post-TSA
- Create Savings and Cost Reduction Models
- Optimize post-spin RemainCo staff
- Promote use of existing services
- Reduce excess costs in RemainCo footprint
- Align financial reporting of RemainCo
- Evaluate success of the Carve-out