Accelerating Value Creation in Buy-side Carve-outs

Accelerating Value Creation in Buy-side Carve-outs

Proven strategic and tactical guidance for rapidly separating and standing up IT

For buyers, carving out an acquired business from its parent is a high-risk process that typically involves some form of business transformation in order to achieve the deal’s expected value within the investment horizon. The keys to maximizing value creation in such transactions are certainty, speed and cost-effectiveness. Separating and standing up the IT components of the carved-out business can be one of the most complex, disruptive, time-consuming and costly parts of these types of transactions — making it a critical lever in the value-creation equation.

Often, the IT separation/transformation can set the critical path for the entire process. Fortunately, IT products and services have evolved to the point where — with the right knowledge and experience — IT carve-outs can be achieved far more predictably, quickly and cost-effectively than in the past, resulting in accelerated time-to-value.

Based on years of experience, here are some strategic (upfront analysis and planning) and tactical (implementation and execution) IT accelerators FTI Consulting recommends to accelerate value creation through technology.