Title

Carve-out support

Section
Services

A change of business ownership or structure is a complex process raising potentially significant operational and procurement risks.

Our carve-out support service provides essential support to businesses changing ownership. Whenever a company changes hands, such as through mergers and acquisitions, both outgoing and incoming owners want to ensure the supply chain will continue supporting the business. Similar issues arise when separating or reintegrating subsidiary business units. 

We have unrivalled experience in assisting owners through the divestment process. We give you rapid access to expert personnel and technologies and provide strategic support to help you maximise the value of your business.

We support financial services companies, that need to ring-fence, separate, or spin off activities and companies moving into, out of, or between Private Equity ownership facing similar challenges to ensure the supply base will support future performance. 

Mergers and acquisitions present an ideal opportunity to review procurement provisions and strategies and renegotiate, replace or rescind contracts as appropriate. For example: 

  • Change of ownership may require novation or reassignment of the contract. 
  • Restrictions on the rights to use may need renegotiating. 
  • Volume-related prices may no longer be appropriate. 
  • Central contracts held by the previous owner may need replacing.
     

How we work

Our carve-out service enables your business to maximise supply chain opportunities with minimum disruption. Our team provides support in the following areas:

Data collection

We collate all relevant contracts and establish basic data, such as starting and expiry dates, signatories, and legal addresses. A central repository for procurement and contract data is best practice but is often fragmented or non-existent.

Legal review

Together with your legal and contractual teams, we streamline contracts and highlight where the change in ownership is creating a gap in provision. Current or imminent supply disputes will also be flagged.

Treatment strategies

We work with your board, senior officers, and stakeholders to ensure procurement is aligned with the overall business and ownership strategy.

Supplier engagement

We maintain supplier relationships throughout the change of ownership and engage with them to arrange the novation of contracts, any necessary renegotiation of terms or, in some cases, contract termination.

Identifying all suppliers and supply processes of direct and indirect goods and services that could pose operational risks is vital. We work with procurement teams and key stakeholders from all the relevant functions to ensure that strategies for each case are drawn up, negotiated, and implemented in good time.

Extract the maximum value from divestment

Ultimately, our Carve-out service allows you to extract the maximum value from divestment, acquisition, or restructuring processes, without disrupting ongoing operations.