SPLIT WITH A STRATEGY GROW PROPERLY.

Carve-outs are complex. But not when we help.

Carve-outs are no longer just something for corporate groups – they’re also becoming a strategic option for mid-market companies and the real estate industry. But a carve-out is more than just a sale: it’s a complex, multi-layered process that requires precise planning, legal certainty and operational excellence.

A business unit that is no longer central to one company can become an opportunity for another to grow. But the reality is often: 

COMPLEX INTERDEPENDENCIES

Entities are operationally and legally intertwined.

IT & PROCESS OBSTACLES

Multiple IT and ERP systems and complex structures make separating difficult.

FINANCIAL & LEGAL RISKS

Cost traps and contractual obstacles need to be identified early.

Grant Thornton will guide you safely through the carve-out process – with a clear plan, in-depth expertise and a strategy that works long-term. Because carve-outs are complex. But not when we help.

NO RISK TO YOU

Safe carve-outs with Grant Thornton

A carve-out is not something you can do on the side – it requires precision, strategic foresight and operational excellence. Whether buy-side or sell-side, without an experienced partner, a carve-out can quickly turn into a pitfall.

We’ll guide you and your carve-out through every phase – minimising risks, maximising opportunities and creating the basis for your next step of growth.

 

Exit readiness & strategy

  • Review of exit readiness
  • Fit-for-exit programme
  • Developing a suitable carve-out strategy

Separation process & risk management

  • Designing an efficient separation process
  • Identifying & managing carve-out risks
  • Minimising remaining costs

Stand-alone model & financials

  • Developing a stand-alone business model
  • Preparing the carve-out financials
  • Adjusting for transfer pricing & cost allocation

Contracts and operational implementation

  • Consulting for transition service agreements (TSAs) and service level agreements (SLAs)
  • Anticipating potential buyers’ requirements
  • Management of the carve-out office
  • Day One readiness checks and support with communication

Risk analysis & strategic evaluation

  • Identifying problem areas, risks & opportunities
  • Analysis of financial & operational interconnections

Takeover & integration

  • Deriving the implications of separation
  • Evaluating the necessary shared services
  • Drafting a 100-day plan

Contracts & legal safeguards

  • Ensuring readiness to take over on Day One
  • Consulting on transition service agreements (TSAs) and service level agreements (SLAs)

 

The right team for a successful carve-out.

Alexander Griesmeier
Alexander Griesmeier
Partner
Munich
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      Frequently asked questions about carve-outs

      A carve-out is when a business unit is strategically split off from a company. A carve-out can be done by means of a sale or a spin-off. The goal is to make a business entity that is no longer central economically and operationally independent or to transfer it to a buyer. Carve-outs are particularly relevant in strategic realignments, mergers and financial restructuring.

      The duration of the carve-out process depends on the complexity of the business unit involved, its legal structure and IT integration. Smaller carve-outs can be completed within a few months, while large, globally interconnected entities take 12–24 months. Detailed planning is crucial to implement the carve-out quickly and smoothly – especially in finance, IT, contracts and operational processes.

      A carve-out is the specific carving out of a business unit, usually by selling or transferring it to an external buyer. The goal is often to quickly turn it into money or a strategic realignment.

      A new company is formed in a spin-off, too, but the shares in the new company are often issued to existing shareholders, so there remains a close link to the parent. A carve-out usually results in complete separation.

      A reverse carve-out is a special form of carve-out whereby it is not the carved-out business unit that is left behind as an independent unit, but the original parent. This is often done when the carved-out area is the more valuable or strategically important entity that should continue as the main business.

      A transition service agreement (TSA) is a contract that regulates temporary support from the parent after the carve-out.

      Why is this important?

      ✔ It ensures that the carved out area remains functional until all its own systems are in place

      ✔ It often includes IT services, accounting, human resources and logistics

      ✔ It reduces operational risks and ensures that transition goes smoothly

      Without a TSA, a carve-out can run into operational difficulties, especially if critical infrastructure or expertise has not yet been built up independently.