Spin-off and Carve-out

Independent unit or sub-segment?

Both the sale of a conglomerate’s subsidiary as legal entity, a “spin-off” and a conglomerate’s sale of a legally integrated business unit, a “carve-out” as a sub-segment of the spin-off, still create interesting transaction opportunities for BPE.

This can be of particular interest if the subsidiaries or business units in question are profitable, yet are not able to fully exploit their potential due to internal or external factors, when compared to the industry standard.

The carve-out process is the considerably more complex case, since, depending on the autonomy of the business unit concerned, whole corporate structures and company divisions have to be set up in order to successfully spin it out. This can include, e.g. a separate accounting department, an independent management level wholly focused on company strategy, an IT department, a purchasing division, a new energy supplier or just the canteen.