Executing a Flawless Carve-out in a Complex Transaction
The Situation
A sponsor was acquiring a multi-unit restaurant brand that required complex and time-crunched carve-out planning and execution. The Sponsor engaged Accordion to execute the carve-out strategically and tactically across all functional areas of the transition – including finance & accounting, IT, HR, legal. Uniquely, the Parent’s shared service center providing finance & accounting and IT functions would be dissolved immediately following the 4-month transition service agreement (TSA) period. This created an extraordinarily short timeline in which to hire teams and transition operations to the Company. In addition, Management was sensitive given previous deal experience where business operations were frequently disrupted during the transition between sponsors.
Services
Carve-Out Planning & Execution
Project Management Oversight
Finance Function Assessment & Design
The Execution
Overall Separation Management:
- Overall: Led carve-out management across Company team members and third-parties to stand up the critical functions: finance, IT, HR and legal.
- Separation Workplans: Maintained and executed against a highly detailed, task-oriented plan by day and by week.
- Liquidity and Cash Management: Developed a 13-week cash flow forecast, and refreshed and distributed weekly to Management and Sponsor team members.
- Board, Management, and Operational Reporting: Led the development of board/monthly financial review materials.
- Vendor Selections: Assisted in vendor selections, running RFP processes for the audit/tax valuation providers, IT master service providers (MSP), health and benefits carrier, and insurance policies.
Finance & Accounting Stand-Up:
- Overall: Led the standup of the finance & accounting function and supported the transition of operations from the Parent to the Company within a short 4-month TSA period.
- Documentation and Process: Documented key finance & accounting process cycles to aid organization design, management of business-as-usual operations, & onboarding.
- Finance Operations: Performed key FP&A and finance operations transition and business-as-usual responsibilities until team was hired and onboarded.
- Operating Model & Budget: Designed the operating model for new team, including overall headcount/budget and roles/responsibilities for each hire.
- Training & Onboarding: Made detailed training plans for team members, coordinating with seller resources for transition, and onboarded the CFO and other new hires
The Results
Accordion facilitated the Company’s transition as a standalone business with no disruption to day-to-day business operations. Our team managed the overall separation, planned for standalone finance and IT functions, and supported the Management Team with finance transition and business-as-usual responsibilities until the team was in place.