Carve-outs and Divestitures

Staying focused on corporate vision and long-term investments may require an organization to divest to fuel new growth. The decision to free-up capital must be founded on corporate strategy alignment, competitive position, and sound operational performance.

Riveron partners with companies and their stakeholders across the divestiture lifecycle to help accelerate the deal timeline and enhance the certainty of close. From the initial assessment and planning phases, to execution, transition, and post-close optimization, we successfully guide both sellers and buyers through even the most complex transactions. Through our carve-out consulting services, we help maximize value, mitigate risks, and elevate the performance of your deal.

Carve-outs and divestitures are complicated processes under the best of circumstances. Building a practical carve-out strategy that maximizes value without compromising performance requires an expert team. Many organizations lack the resources to invest sufficient time and research into the formation and execution of the plan, which can lead to lower value and unpredictable outcomes.

Riveron offers integrated carve-out services, designed to facilitate a seamless process from the development of trustworthy carve-out financials, to the project management of the process, to the formation of a transition services agreement (TSA)…As a result, businesses can successfully complete the carve-out with minimal confusion, delays, or unexpected outcomes.

Our integrated carve-out and divestiture services include:

• Sell-side diligence
• Technology advisory
• Separation strategy and back-office stand-up
• Transaction tax
• Carve-out financial statements
• Transition service agreements

Divestiture Accounting Guidance

During a divestiture, a company seeks to shed its ownership or participation in a certain asset. Companies choose to divest as a way of generating cash from a failing or non-core asset, adhering to evolving regulations, or other strategic reasons. There are multiple ways to complete a carve-out divestiture , including the following types: :

• Sell-offs: Selling an existing asset, with the anticipation of cash proceeds from the sale
• Split-offs: Offering stakeholders the ability to accept shares in a new subsidiary in exchange for their existing shares in the parent company
• Spin-offs: Taking an asset or division and spinning it off into an independent company, with shares available for stakeholders