Once the carve-out sale agreement is signed, the focus shifts to separating the business from the parent company and transitioning to the buyer – without disrupting operations. Planning performed prior to deal-signing pays dividends, as attention turns to the following separation priorities:
Implement separation governance
While project management is a component of governance, effective governance is ultimately about decision-making. Clearly defined decision-making rights and guiding principles focused on prioritizing separation requirements are critical when working with a buyer to preserve value and transition as much of the business as possible pre-close.
Finalize the Day 1 operating model
Before the business can be separated, key processes at each impacted location must be understood at a detailed level. Different factors can have significant closing environment trade-offs and implications that consistently challenge experienced management teams. For example, buyer readiness constraints and market authorization requirements often require developing an interim operating model for Day 1 with the buyer.
Finalize workarounds for long lead time separation activities
These next three months are rarely sufficient time to finalize separation of IT systems, form new legal entities that are ready to conduct business, and address all regulatory requirements. Creative workarounds get the deal closed.