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The art of the modern carve-out: six steps to greater value

Overview

In today's low-growth environment, corporates are under pressure to improve returns. Add to this activist shareholders and focused competition, and the pressure is unrelenting.


It is no surprise, then, that many corporates are withdrawing from activities where their businesses are least profitable or where there is no longer a strategic fit. Carve-outs can unlock value from these non-core enterprises.


At the same time, private equity investors are taking a greater interest in buying assets that they have to carve out from the seller's business. There is often fierce competition for standalone assets, so investors are taking a more creative approach to building their portfolios.


This Baker McKenzie guide sets out the steps that can be taken to create the right circumstances for success when considering a carve-out.

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