Carve-Out Planning & Execution
Been There. Carved That.
Carve-outs are a growing part of the M&A cycle. Buyers with dry powder are seeking alternative deal vehicles, of which the carve-out has become king. But carve-outs can be a fickle king that gives pause to even serial acquirers. At Accordion, we understand carve-out complexities because we’ve been here before. We regularly help clients successfully navigate the entire carve-out lifecycle.
From identifying the acquisition to negotiating (and implementing) the Transaction Services Agreement. From pre-sign through deal close to standing up the business. We provide the hands-on leadership, operational expertise and resources to successfully execute a carve-out acquisition and implement new standalone business requirements.
The Accordion Approach to Carve-Outs
Carve-out success is dictated by three words: planning, planning, and planning. Accordion shepherds clients through pre- and post-close planning by focusing on the creation of an effective and independent operating model. As part of this process, we support operational diligence, the creation of implementation playbooks and separation budgets (mindful of cash-in and cash-out entanglements), financial reporting forecasts and 100-day planning exercises.
Drill Down Execution
Carve-outs are roll-up-your-sleeve type work and we are roll-up-your-sleeve type people. We don’t just spearhead strategy, (though we do that quite well.) We also manage and execute against critical carve-out elements (Transition Services Agreements, Separation Management Offices, Day One Readiness objectives, etc.). While the full expanse of our execution experience is too long to list, it includes balance sheet valuation and audits, establishment of corporate governance and structures, and transition leadership and cash control tasks.
Our people have done this before (and before and before). From buy-side to sell-side, they’ve been in interim management positions and have led SMOs and functional departments (on the advisory side and within transacting companies). Accordion teams are agile, allowing clients to flex up or down as requirements and subject matter expertise needs ebb and flow. What’s more, we do this all in a manner that doesn’t burden the team running the day-to-day business with the transitional distractions of standing up a company.
Value Creation Playbook
Creating value in complex and sophisticated environments is our specialty. Accordion has supported clients through traditional carve-out acquisition engagements and multi-party, multi-merger carve-out scenarios. In each case, we follow a stabilize, then optimize custom playbook to value creation – helping clients plan for and trouble shoot transitional hurdles and then turning our collective attention to optimizing the new company to create additional (out-sized) value.
Mergers come with too many people. Carve-outs come with too few.