In this case-based article, we share how Creston Advisory led the clean separation of a divested business unit, including IT disentanglement, TSA governance, and standalone readiness — all delivered under a compressed timeline.
Carve-outs are among the most complex, high-stakes maneuvers in M&A — and speed is everything. Done right, they unlock value and reduce stranded costs. Done poorly, they erode momentum and burn cash.
1. Start with a Standalone Operating Model
Before separation begins, define the target state. What functions stay? What needs to be built? Who owns what? Your 120-day clock starts with clarity around the end state.
2. Build a Robust TSA Strategy
Transitional Services Agreements (TSAs) are a double-edged sword. They can ease the transition — or become a crutch. Plan early, keep them short, and assign clear owners for every TSA workstream.
3. IT Separation is the Critical Path
Nothing drives cost or risk like IT disentanglement. Prioritize application mapping, data separation, and new infrastructure setup. Identify Day 1 vs. Day 120 cutover priorities.
4. Financial Clean Rooms Enable Fast Execution
Clean financials drive confidence. Stand up a parallel finance function as early as possible. Ensure reporting continuity and audit readiness.
5. Communication Builds Confidence
Carve-outs trigger uncertainty across the board. Communicate frequently with internal teams, customers, and third parties. Certainty and transparency protect business continuity.
Speed doesn’t mean chaos — it means choreography. At Creston Advisory, we bring the frameworks, tools, and leadership to execute carve-outs with precision and velocity.
