Carve-out Transactions

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Main Services

1.　Creating carve-out financial statements
2.　Seller’s Due Diligence
3.　Structuring advice

 

G-FAS provides advice from multiple perspectives, including support for creating carve-out financial statements, DD and structuring advice

 

What is Carve-out Transactions?

Taking out a part of a company or business is referred to as a “carve-out“ transaction, typically used in business sale and corporate split situations. Key considerations of a carve-out deal are: (1) specifying the scope of sale, and (2) preparing financial information corresponding to the business or assets that are carved out (image below). It is extremely important to resolve these issues in advance, especially before the sale process.

 

By improving the quality of disclosed information, sellers may win the buyer’s trust which may lead to a more receptive offer and mitigate price discounts etc. caused by uncertainties from undisclosed information.