Dos and don’ts in carve-out M&A transactions

in cooperation with Frankfurt based M&A advisor Sigma Corporate Finance, we held a lecture on dos and don’ts in carve-out M&A transactions at the end of November.

Companies initiate carve-out trans­actions for various reasons. Carve-out trans­actions are M&A trans­actions in which the target business to be sold is inter­woven with the remaining business of the seller. The target business there­fore needs to be separated in the course of the trans­action in a way that enables it to continue operations on its own going forward.

From the perspective of the seller, carve-out trans­actions differ from regular M&A in many respects. These dif­ferences include the specific motives and objectives of the trans­action, the strategic aspects and consider­ations as well as unique challenges. Sellers need to take into account these features early on to ensure the long-term success of the transaction.

Sigma Corporate Finance and Kuhn Carl Norden Baum outlined the most important issues, hurdles and solu­tions in this 1-hour presen­tation. Sigma Corporate Finance shared their far-reaching experience as M&A advisor focusing on the financial and strategic aspects while Kuhn Carl Norden Baum explained how to implement them from a legal per­spective. We showed you how both fields can and should work hand in hand in any success­ful trans­action and that com­bining both fields is of great importance.

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