Preparing a business for a carve-out, spin-off and/or sale is a complex exercise that requires up front effective planning and strong execution. Typically, carve-out financial statements are the foundation from which all other deal related financial information is either derived from or reconciled to, thereby supporting various financial information needs of multiple transaction participants. Time and time again we see and hear that preparing financial information for the business to be divested is one of the key and most complex issues that management faces in the execution of a sale or spin-off.
Critical to any carve-out process, including the spin-off of a subsidiary or ancillary business are a number of key success factors including technical accounting knowledge, data strategy, and analytical skills around not just the tactical extraction and separation process, but also the various regulatory and accounting requirements to be addressed in executing the transaction.
Having a robust carve-out process that embeds data-driven solutions, including PwC-developed deal analytics tools, helps to facilitate rapid and reliable analysis of financial data. This increases flexibility and scalability of the carve-out process. It also provides agility and optionality, helping to simultaneously navigate numerous strategic paths that a transaction may take and enabling organizations to drive quality, efficiency, and value throughout the deal process.