Services
Carveouts & Divestitures
Carveouts demand clarity and control. Together, we’ll simplify the complexities, protect the bottom line, and separate for long-term success.
How We Help
Carveout Diligence and Sell-Side Readiness
Whether you’re preparing to divest or evaluating a carveout opportunity, our team ensures you’re ready to act. We assess entanglements across systems, people, and operations, modeling standalone run rates and separation costs for confidence at every stage. For sellers, we stress-test your operations, identify vulnerabilities early, and develop comprehensive standalone operating cost models. This ensures a cleaner, more efficient process, protecting value and reducing risk during negotiations.
TSA Management and Execution
Transition Service Agreements (TSAs) often add complexity and cost to carveouts. Our experts design efficient TSA schedules, leveraging pre-built templates and accelerators to expedite agreement. We define clear governance and escalation processes to ensure smooth execution. Using our proprietary tools, we help clients rapidly exit TSAs, often reducing stranded costs by up to 30%.
Target Operating Model and NewCo Definition
A scalable Target Operating Model is the backbone of a successful carveout. We define a clear operating and capability model, balancing optimization and risk mitigation through our proprietary Value to Risk (V2R) framework. From skills and organization structure to metrics, systems, and culture, we help you establish a NewCo ready to thrive post-separation.
Separation Management Office (SMO) Program
Our Separation Management Office (SMO) ensures execution with precision and minimal disruption. Using proven carveout methodologies, digital dashboards, and lean teams, we track progress and streamline administrative burdens. Acting as program leaders, we orchestrate cross-functional efforts to meet Day 1 readiness and long-term success milestones.
Technology Stand-Up and Interim Leadership
We leverage cutting-edge technology to build an agile, scalable organization from the outset. With proprietary tools for ERP data migration and cloud infrastructure setup, we ensure rapid exits from TSAs and establish foundational systems like analytics, HCM, and CRM. Our CORE (Carve-Out Readiness & Execution) approach provides interim functional leadership in key areas like HR, finance, and IT, reducing vendors and program risks while accelerating progress.
The Case for Carveouts & Divestitures
- 75%
executives report major delays during divestiture execution
- 10.7%
share of U.S. private equity buyouts in Q4 2024, nearly double 2021’s 5.8%
- 38%
cite lack of separation readiness as the biggest cause of lost value
What We’ll Achieve
Clean Divestitures
Navigate the carveout process efficiently and confidently with our teams who have been there, done that.
Optimized TSAs
Seamless service transitions with faster exits.
Scalable Target Operating Model
Build a foundation for growth and operational excellence.
Streamlined Execution
Align cross-functional teams and reduce administrative complexity.
Why West Monroe?
Award-Winning Carveout Experts
We are recognized as leaders in carveouts, winning multiple awards for our carveout advisory and execution on complex deals. With decades of experience, our team delivers the precision, insights, and execution you need to succeed.
Shared Impact and ROI
Our commitment to your success extends beyond strategy. We align our approach with your goals, focusing on high-ROI outcomes and measurable results, such as cost savings, operational efficiency, and standalone growth readiness.
Flexible and Fast
We deliver results at the pace your business demands. Leveraging proprietary tools and frameworks, we adapt to your unique carveout challenges to achieve accelerated yet thorough transitions.
Transformation in Action
Rugs USA exceeds M&A synergy targets by 60%
Rugs USA was embarking on its largest transaction to date and needed help quantifying the increase in EBITDA and defining an actionable plan to get there. The result? A focus on creating financial value that drove synergies by 60% over diligence targets.
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