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Carve Out Anchor Exit

Carve Outs

Creating separation strategies for both the buyer and the seller. First identifying which people, processes, and technology are to move to the new company. Then developing a detailed plan to execute the transaction.


Case Study

A Private Equity Fund brought The Ducats Group to the table to conduct an IT due diligence on a prospective mid-market carve out headquartered on the West Coast. 

The Ducats Group met with the sponsor to understand the investment thesis, then conducted its proprietary feasibility analysis during diligence against the investment thesis. By developing the stand up one-time and recurring schedules, identifying a Key Findings Analysis, it successfully got everyone to signature.  During the the pre-close phase, TDG was able to negotiate a favorable TSA that provided dividends downstream that included licensing cost and transfer fee reductions with a savings of 75%. 

Post-transaction, the carve out challenges included an uncooperative seller, lack of information, limited processes, and outdated systems. The company would have to stand up the entire corporate platform, including executive suite hires. ​

The sponsor asked TDG to own the TSA plan it created during diligence, which TDG did by delivering on time and on budget:​

  • Standing up the corporate entity​

  • Orchestrating workstreams and key third-parties statements of work and contract agreements​

  • Executing the successful separation of 60 branch locations in the U.S. and Canada​

  • Evaluating, selecting, and operationalizing a Managed Service Provider for IT​

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