More carve-outs in 2022! Aurelius' seventh annual corporate carve-out survey has revealed that 80% of corporate and consulting experts expect the volume of corporate carve-outs to increase in 2022. But what are the success factors of a carve-out project?
The market conditions have been rather favourable for sellers in recent years. But companies are being confronted with unprecedented new challenges and disruptions like the COVID-19 pandemic. Ambiguity and turbulences in stock markets are causing valuations to be quite volatile. And business need to adapt faster than ever before. Divesting part of the asset base may be the hard, but right consequence if the competitive position of a business segment has been dramatically weakened and cannot withstand an uncertain future.
But deciding on a carve-out is a rather easy task compared to the complexity of executing a carve-out of a business that may include a regional scope of twenty or more countries, involving highly complex IT systems, intellectual property, and so on. The success of the operational carve-out can make the difference, if the carve-out will create company value or destroy company value. Here are five tips that have been distilled for you to lead and manage carve-out projects successfully.