Sponsor needs to cost out a carve-out​

Picture this...

You’re a sponsor evaluating a carve-out, add on acquisition of a $270 million specialty distributor of plumbing products from a global publicly traded company. You need to develop and establish a standalone costing model in order to prepare the proper bid and then to evaluate entanglements, TSA needs, and to generally support the potential integration. It’s a complex costing process and you need help.​

You turn to Accordion.

We partner with your team to develop a standalone costing model. More specifically, we: ​

• Coordinate with your already in progress diligence effort.​
• Discuss current allocation and financial baselines with the Financial Due Diligence provider to ensure alignment on respective scopes after reviewing the data room, Confidential Information Memorandum (CIM), and other available information.​
• Conduct management calls to further identify services (allocated and not-allocated) provided by the parent corporation, covering HR, Finance and Accounting, Sales, Marketing, Supply Chain, Legal, and sub-functional areas. ​
• Document the services provided and identify entanglements (saving any documented entanglements to inform TSA schedules and carve-out integration planning).​
• Develop estimates to replace services provided by the parent utilizing databases and third-party services providers.​

Your value is enhanced.

Because you now have a financial model of standalone run-rate and one-time carve-out costs, you can better estimate EBITDA to create a realistic and compelling bid. In addition, you are now aware of all the potential entanglements that may cause deal issues and risks down the road, specifically around merger integration.​