22
Specialist view
ACHIEVING DAY ONE READINESS AND ADHERENCE TO BUSINESS PLAN ARE KEY SUCCESS FACTORS
Most participants identified ensuring day one readiness as key to a carve-out transaction's success. The second most important success factors mentioned are
stability of sales and achieving the target valuation of the carve-out business (50%). Other success factors identified included: having a clear communication strategy
(33%) and limiting the group of people involved (48%). To ensure success of the transaction, 81% of participants indicated that they rely on additional external
expertise
"The key importance of day
one readiness underlines the
critical role of the project
management team in
programme planning and
steering of the carve-out
process. They will coordinate
the definition of the target
operating model (TOM),
identification of necessary
separation measures, the
implementation of any valueenhancing
measures and, in
particular, the action plan for
achieving day one readiness
(including any transitional
service agreements (TSAs).
Day one readiness directly
affects the stability of sales
and the achievement of target
values as from the closing
date."
"IT separation has always
been considered particularly
time-critical and a transaction
risk. These concerns can be
tackled, among other things,
by not including the IT carveout
as a condition to closing,
but instead relying on an IT
carve-out separation plan to
be jointly implemented after
the closing date and with
appropriate IT TSAs."
"Devoting sufficient internal
resources at a management
and operating level is crucial to
success; as confirmed by the
survey, 81% of the participants
indicated they rely on
additional external expertise.
This can be used to enhance
capacity, improve process
control, ensure independent
specialist view and
identify/manage risk
considerations."
"Depending on seller's
preferences and the definition
of the target operating model,
day one readiness will be
structured such as to reflect
full, medium or light autonomy
from the seller group."
"Day one readiness does not
necessarily mean the complete
separation of the carve-out
business unit from the seller
group with immediate effect
from completion. TSAs,
providing support beyond the
closing date, are common typically
in relation to areas
such as IT, accounting and
finance. Often, despite the
separation efforts, existing
synergy potentials can be used
profitably, e.g., joint
purchasing, joint use of
administrative and production
buildings, or mutual contract
manufacturing."
7