Advisory · Private Equity · M&A

IT carve-out and carve-in

Separating a business from its group, or bringing a new one in, is first and foremost an IT project. Applications, data, contracts and teams are shared, and every missed dependency ends up as extra cost or delay. I run these operations from scoping through to TSA exit.

When to call me

Situations where I can help.

A group is selling a division or subsidiary.
A fund is buying a business that has to stand on its own quickly.
An acquisition has to join a platform's systems as part of a build-up.
IT costs after separation are higher than planned.
What I take on

The scope covered.

Dependency mapping

Shared applications, data, infrastructure, contracts and people.

TSAs

Scope, service levels, pricing and exit timeline.

Day 1

What has to work on separation day, and the cutover plan.

Target organisation

Stand-alone IT function, teams, vendors, governance.

Stand-alone costs

Recurring IT budget, one-off costs, and a path to bring them down.

Carve-in

Integration into the buyer's systems, application rationalisation, synergies.

How it works

An engagement in four stages.

01

Diagnosis

Dependencies, risks and cost estimate. Two to four weeks.

02

Plan and TSAs

Scenarios, TSA negotiation, Day 1 plan.

03

Execution

Running the separation or integration through to cutover.

04

TSA exit

Final migrations, stand-alone organisation in place, handover to the teams.

What you get

A dated, costed separation or integration plan, clear governance between seller, buyer and vendors, and monthly cost tracking until the TSAs end.

Track record

What I've already done in this area.

Merger of four HSBC Private Banking subsidiaries.
Preparing the Fimagest integration at Fortis Investments, with an ERP rolled out in five countries.
Post-merger transformation programme at AÉSIO Mutuelle: 16 projects and 4,600 person-days.
M&A due diligences and integrations within the Vivendi group.
FAQ

Your questions.

What is a TSA?

A Transitional Service Agreement: the contract under which the seller keeps providing some IT services to the divested business until it has its own systems. Its length and price weigh heavily on the total cost of the deal.

How much does IT independence cost after a carve-out?

It depends on the scope, but recurring IT costs almost always go up after separation. I put a number on them during the diagnosis so they are built into the business plan.

Do you work for the seller or the buyer?

Both. For the seller, to prepare a clean, defensible separation. For the buyer, to secure Day 1 and keep costs under control.

Other expertise
Contact

A programme to launch? A deal to secure? An organisation to build ?

I'm happy to have a confidential conversation about your situation, with no commitment on your side.