A closer look at Carve-outs
Divestiture Survey Report
What are some of the most important factors driving companies to divest or “carve-out” a subsidiary or a portion of their operations such as a plant, facility, product line, business unit, or division? To what extent do companies consider and sell carve-outs to strategic buyers vs. financial buyers such as private equity firms? What type of sales process is typically used and how long does it take to complete these types of deals?
To understand how companies are addressing these and other issues, Deloitte Corporate Finance (“DCF”), a subsidiary of Deloitte Financial Advisory Services LLP surveyed 100 executives at major companies, including 75 who worked at companies that had executed one or more carve-outs within the last three years. The survey defined a carve-out as the sale of a subsidiary or a portion of a company’s business, whether a plant, other facility, product line, business unit, or a division. The survey asked executives about their overall assessment of the market for divestitures today and in the future, and also about the specific carve-outs that their company has executed over the last three years. In total, the survey asked executives about 174 specific carve-out transactions.
Find out more about some of the most important factors driving companies to divest or “carve-out” a subsidiary or a portion of their operations as well as an overall assessment of the market for divestitures today and in the future by downloading the full survey report below.