Spin-off and Divestiture

How to achieve a success in complex situations ?

To various degrees subsidiary divestment as well as spin-off or carve-out of a business unit add elements of complexity to the sellout project.

MBA Capital has a proven expertise in these specifif operations in which the prior preparation phase is key.

MBA Capital recommends to initiate the preparation of a subsidiary divestiture, a spin-off or a business unit carve-out at least 2 years ahead, ideally 3 years. Indeed, as in most envisaged sellouts, the legal, tax, financial topics as well as the business model optimization or the organization, require anticipation in order to be decided, implemented and their impacts reflected in the activity and the key figures. On top of these issues there are also the carve-out aspects, both operational and of substance transferred to the new legal entity.

MBA Capital advises its client during the whole preparation phase.

During this phase, the valuation especially in the case of spin-off or carve-out of business unit requires a specific expertise which is part of MBA Capital knowhow.

Once the preparation phase completed, the sellout process resumes the usual steps nonetheless with the same factors of complexity along the way which mandate a specific attention.

  • Divestitures, spin-offs and carve-outs are complex situations
  • Our proven expertise in such contexts
  • Our strong recommendation : such a sellout should be prepared from 2 to 3 years ahead, especially on the carve-out aspects
  • Our specific expertise of valuation of companies and business units in complex situations

MBA Capital advises the seller all along the process, right from the upfront preparation.