Divestitures, including carve-outs, account for about 30% of all
M&A transactions.1 In an increasingly competitive
M&A environment, with significant capital chasing limited deals
and fewer exits, private equity (PE) firms are considering multiple
and concurrent carve-outs as a fast way to unlock value from their
assets. While breaking up a business into several parallel
disposals can certainly maximise returns, it also brings with it
significantly more complexity.2
Managing multiple carve-outs at once is not simply about
executing similar divestitures in isolation. The transactions often
interact and overlap, compounding the operational and
organisational challenges.
In this article, part of our series "Unlocking Success in
M&A," we share Alvarez & Marsal (A&M)'s recent
experience working with PE funds over the past two years, where we
have first supported sponsors in acquiring and carving out a target
from a corporate seller and subsequently helped them execute
