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Case Study

Planning & Executing a Smooth Carve-Out

Team Size
1 Managing Director , 2 Vice Presidents
Project Duration
8 months

The Challenge

A Sponsor-backed Management Team was carving a business out of a listed corporate entity. In need of carve-out planning and execution support, they chose Accordion as their partner to head the Separation Management Office (SMO). Initially, the focus was on Day One readiness and a Transition Service Agreement.  Key deliverables included stand-alone cost estimates and interim operating procedures of the Finance function. Following Day One, the focus shifted to the standing-up of an independent Finance function with key workstreams including a budget, financial reporting, bank reporting, new CFO on-boarding, and ERP selection/implementation.

Services

Carve-Out Planning & Execution

Sell-Side Readiness

Merger Integration Planning & Execution

The Execution

Our team helped the Management Team prepare for Day One as a stand-alone business and then led the Finance function in key positions. A detailed plan to set-up the IT, HR, Legal, and Finance functions was developed and executed, including:

  • Immediately assessed the closing and operational standalone requirements; collaborated with Management to develop a streamlined pre-close execution process to address complex IT, Operational, and Finance requirements.
  • Worked with new Management to develop and execute an employee communications strategy alongside a communications advisor.
  • Maintained a detailed, task-oriented stand-up plan as part of the SMO effort, including managing the buyer’s professional relationships to avoid duplication and reduce fees.
  • Implemented an interim Finance function where our professionals played key leadership roles; Drafted the go-forward Finance organizational design, ready for the new CFO to execute with support to onboard key positions
  • Identified the right cost structure which led to the appropriate bid and balance sheet funding.
  • Provided Finance expertise for the new ERP system implementation and process re-engineering related to the Finance function, including training and handing-over to the new Finance team.

The Results

Accordion played a key role in getting the business ready for Day One as a stand-alone business – managing the overall separation effort, creating the plans for an independent Finance function and executing on key steps until the full-time Finance team was in place. Through our partnership, there was limited disruption in running the day-to-day business for Day One and beyond. What’s more, a robust Finance function foundation was laid on which the team and rest of the business could rely on for strategic value and insight.