Carve-out Planning and Support
Carve-out Planning and Support
Kratos Partner’s Method of Carve-Outs With our sole emphasis on private equity, Kratos Partners is able to assist sponsors and their management teams as they move through the carve-out lifecycle.
We have a reputation for assisting with management teams and PE sponsors to plan and carry through carve-out purchases through due diligence, signing, closure, and TSA exit. Our Carve-Out solutions combine planning, coordination, industry knowledge, and functional experience to ensure a smooth separation while promoting change and achieving results while keeping in mind the mission and values of the split business.
Our carve-out and separation process follows a sequence of coordinated steps to focus resources and capital on the right things at the right times:
- Establish New Company’s Post Carve-out Strategy.
- Plan the Separation/Carve-out and the Transition.
- Design the future state (the “To Be”) operating model, including strategic technology architecture considerations in alignment with business objectives.
- Develop the Carve-out Financials (including standalone costs, shared services, etc.)
- Get Ready for Day One - Plan and Execute
- Develop transition plan including the transition services agreement (“TSA”) outlining ongoing operational and associated technology systems provided by the seller post-close and negotiating favorable terms while not introducing operational risk
- Develop Plan to Modify New Company Operating Model
- Execute Day 1 activities and initiate Transition Plan
- Implement New Company Future State employing both shorter term and strategic approaches for separating from the TSA and building the eventual optimal enterprise architecture
Our approach is informed by these key considerations:
- What is the vision for the new enterprise?
- How will the new enterprise create value for its customers and shareholders?
- What new capabilities, product, markets or other value-added offering can be provided?
- How can technology enable or inhibit new business strategies or scalability?
- Who leads the separation process (overall day-to-day)?
- How should the separation be managed? o Are there gaps in leadership that need to be addressed?
- What level of resources should be dedicated to the process?
- Are there cultural considerations to take into account?
- What parts of the business must be separated?
- At what level in the business should change occur?
- At what pace should the separation proceed? o Are there operational and overhead savings that can be obtained?
- How do we deploy technology efficiently while building towards an optimal long-term architecture?