Carve-Out Consultants: Job Duties & Hiring Benefits

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Carve-outs require meticulous planning, proper resource allocation, and the ability to foresee potential issues before they arise.

Without proper management and oversight, companies will run into many issues that soak up all their available time, money, and resources. As such, it can often be more beneficial to turn to a trusted carve-out consultant for support.

As experts in helping organizations maximize the value of a deal and drive carve-out success, we’ve outlined some essential information about carve-out consultants, including their top skills and job duties, the benefits they bring, and the signs it’s time to engage one.

Things to know about carve-out consultants:

What happens during a Carve-Out?

The carve-out process involves selling an asset, interest, or investment to external investors in exchange for an influx of cash that the seller can use to refine their operations without rescinding control or ownership of the entity being sold.

Common Carve-Out activities:

  • Identifying assets within the business that could benefit from a carve-out, evaluating their value, and determining the right path forward.
  • Developing transition plans, preparing for due diligence, and mitigating risks.
  • Restructuring and optimizing finance and accounting processes so that they align with the goals of the carve-out.
  • Integrating the carve-out entity with a focus on maximizing synergy and value.
  • Streamlining operations associated with the carve-out to enhance efficiency and profitability.
  • Ensuring compliance with laws and regulations.
  • Communicating with stakeholders, employees, investors, and regulatory bodies.
  • Implementing systems and processes to monitor performance of the carve-out after the transaction has gone through to ensure the achievement of desired outcomes.

What are the main job duties of a Carve-Out Consultant?

Carve-out consultants oversee the entire transaction with a focus on reducing risks and issues, offering expert advice to minimize operational disruptions, refining services with the highest yield, and refining or removing units that are less profitable.

These consultants work on various projects, ranging from operational analysis to stakeholder management.

Common responsibilities of Carve-Out Consultants:

  • Assessing the company, their processes, and their employees for improvement areas and risks and implementing a plan of corrective action.
  • Developing due diligence roadmaps.
  • Creating and implementing carve-out strategies to maximize transaction value.
  • Managing operational complexities.
  • Accelerating time to close.
  • Implementing and testing financial systems.
  • Improving the finance function.

Benefits of hiring a Carve-Out Consultant:

  • Optimizing operations, processes, and systems for efficiency.
  • Managing cash influx from investors and shareholders.
  • Strengthening due diligence strategies to mitigate risks.
  • Accelerating the transaction process while maximizing deal realization.
  • Providing guidance on profitable assets and divestitures.

When to engage a Carve-Out Consultant

Successful carve-outs require seamless integration of people, processes, and systems, which necessitates proper oversight and management. Oftentimes, companies don’t have the in-house resources or expertise that is needed.

As such, it can be incredibly beneficial to hire a carve-out consultant from the get-go, as they will work diligently to ensure a minimization in disruptions and a maximization in value.

If your organization is considering a carve-out, our experienced team at DLC is here to help you with:

  • Ensuring transactional recording and monthly accounting and closing processes are aligned.
  • Consolidating monthly, quarterly, and other periodic reporting processes and eliminating redundancies.
  • Creating new budgets and forecasts for the combined entity.
  • Ensuring data flow is unimpeded through company financial systems, so all of the above can be readily and reliably accomplished day-to-day.
  • Conducting operational and financial analyses significant for the new combined entity.
  • Ensuring internal staff has a comprehensive understanding of go-forward requirements and any anticipated cultural shifts that will impact their roles and tasks.