Dear Community,
I would like to ask in question in regard to an upcoming interview I will have at a Big 4 company. I will interview for a position within the PMI/Carve-out team. I know that most of the projects are from a vendors perspective (e.g. vendor due diligence, separation of a business unit, etc.). I am struggling with developing a structure for a possible carve-out scenario on the vendor and buyer side. I also checked previous Q&A's and could extract some valuable information, however these information mostly apply to the buy-side. My question here would be if anyone has an idea or could suggest a possible way to structure a carve out separation case (e.g. Car Company XY is planning to sell their motorcycle division. How should they proceed?).
I would start with asking the following clarifying questions:
- Why is the company selling the business unit?
- Do they have a financial target in mind (value of business unit)?
- What is the internal time frame the business unit should be sold?
As I stated before I am struggling with the development of a structure, however, if I think about the problem, I would like to tackle the following points:
- Company analysis How would the company be affected if they sell the business unit? To what extent is the business unit interlinked with the company/group?
- Operational Due Diligence Which business units would be affected by the separation?
- Separation strategy How feasible? Is it doable?
- Risks (Strategic, organizational, financial)
- Recommendation
Thinking about a potential integration strategy, I would go as follow:
- Company analysis How would the company be affected if they buy the business unit?
- Operational Due Diligence Which business units would be affected by the integration?
- Integration strategy How feasible? Is it doable? IT, Employees, ...
- Risks (Strategic, organizational, financial)
- Recommendation
I am very happy for any kind of feedback and help!