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RECOMMENDATIONS TO DECISION MAKERS SURVEY RESULTS
Consider strategic alternatives from the outset:
A cost-benefit analysis of available strategic options will demonstrate the incremental
value that needs to be achieved by the preferred option. Frequently, the carve-out business
is not independently organized which creates room for strategic alternatives
Apply business judgement:
Directors benefit from the Business Judgement Rule if the carve-out decision making
process ("fix, close or sell") is made on an informed basis. To this end, a properly
documented analysis of the available strategic alternatives taking into account relevant
parameters such as market, customers, employees, financing, etc., is invaluable
Identify stakeholders' positions:
Positions of shareholders, financing banks, employees, unions and customers should form
part of the analysis of strategic alternatives to identify potential gating items or
accelerating factors and minimize bottlenecks when implementing the carve-out
transaction
The transformation office (TMO) requires senior experts that can draw upon many
years of experience such that decision makers are disburdened from daily project
management and that carve-out and M&A process run in parallel, smoothly
Further reading!
To what extent were the deal economics
expectations underlying the deal achieved?
44% Completely
40% Slightly below
12% Exceeded
4% Clearly below
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If so, what alternative courses of action are
typically considered?
68% Internal restructuring
61% Closure of parts of the business
27% Joint Venture
Is the review of strategic alternatives performed
prior to a carve-out decision?
63% Yes
29% Depends on complexity
6% No