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Manufacturing

Manufacturing division carve-out

A $300M division carved out of a $6B parent faced a 12-month TSA. A rapid IT assessment right-sized the infrastructure and ERP, and the business was running on its own systems in five months.

Transaction Services
Carve-out
Headline result
$3.5M

in TSA fees avoided on a manufacturing carve-out

The challenge

A buyer carved a $300M manufacturing and distribution division out of a $6B parent. The division had a 12-month transition services agreement (TSA) at about $500K a month, so every month on the parent’s systems was expensive. It needed to stand up as its own business, fast.

Our approach

We ran a rapid IT assessment to right-size the infrastructure and ERP for the new company, with the ERP aligned to the investment thesis. We then designed and put in its own network, servers, storage, desktops, phone system and help desk.

The outcome

The new infrastructure and ERP were complete in five months. The division left the TSA seven months early and never paid $3.5M in TSA fees.

Results
5 months

to new infrastructure and ERP

7 months

of TSA fees never paid

Work with operators who’ve done it before

Tell us about the deal or the portfolio company, and a senior partner will scope the work with you.