Carve-Out Day 1 Planning

“Day 1” Carve-out activities usually entails a variety of activities spread over an array of functional areas. In order to keep all those tasks properly managed, these activities should be properly planned.

Client challenges

• Carving out an activity out of a company entails a variety of activities. Managing this type of process is essential.
• Key tasks that are not conducted on day 1 usually affect the pace and process sequence.
• Stockholders are expecting to get the process conducted fast in order to be able to improve organization efficiency and effectiveness fast.

How we can help

• Identify clearly all the stakeholders
• Manage the communication towards the stakeholders in order to manage the expectations
• Reduce the risk of failure
• Make the relevant managers come on board the project
• Offer external resources to support the process and wherever needed replace function within the organization.

Key benefits

• The commitment of the board
• The commitment of the managers
• Clients’ expectations managed
• Reduced impact on Business as Usual impact

Lessons learned

• Doing the homework to define the business for sale and to develop a comprehensive understanding of how the business interacts with the selling parent is key.
• Control versus speed; there is always a balancing act when going to market with a divestment plan.
• The seller should clearly define the business for sale and its ingredients.
• Build out a team carefully to manage the divestitures.