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Case Study

Executing a Flawless Carve-out in a Complex Transaction

Team Size
1 Managing Director, 1 Vice President, 1 Associate, 1 Analyst
Project Duration
15 weeks

The Challenge

After acquiring a multi-unit retail brand that required complex carve-out planning and execution, the Sponsor chose Accordion as their partner to lead the Separation Management Office (SMO). Our team worked shoulder-to-shoulder with the Sponsor and Management Team to execute the carve-out strategically and tactically across all functional areas of the transition, including Finance & Accounting, IT, HR, and Legal.

Carve-out expertise was critical given the complexity of the transaction. For strategic reasons, the parent company that provided shared Finance & Accounting and IT functions would have to dissolve 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, the Management Team was sensitive given previous experience where business operations were disrupted during the transition between financial sponsors.

Services

Carve-Out Planning & Execution

Actionable Business Analytics

Budgeting & Forecasting Process Improvement

The Execution

Overall Management – led overall carve-out management to stand up the Finance, IT, HR, and Legal functions.

  • Maintained and executed against a detailed, task-oriented plan
  • Developed a 13 week cash flow forecast and updated weekly
  • Assisted in vendor selection, processes including audit/tax and valuation firms, IT Master Service Providers (MSP), health and benefits carrier, and insurance policies
  • Assisted in development of board/financial review materials

Stand-Up of Finance Function – helped build the Finance and Accounting teams and transitioned operations to the Company within a short 4-month TSA period.

  • Documented key finance and accounting process cycles to facilitate organization design, management of business-as-usual operations, and onboarding for the new finance team
  • Performed key transition and business-as-usual responsibilities until team was in place
  • Designed operating model for new team, including overall headcount/budget and specific roles/responsibilities for each hire
  • Developed highly detailed, week-by-week training plans for each team member
  • Helped interview/hire and onboard team members

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.