Private equity is well-suited to carve-outs involving undermanaged parts of companies. In the current climate – with businesses looking to unload and restructure amid economic turmoil – the temptation to go after carve-outs and spin-offs is high. However, research shows that not all global carve-outs are going to plan.
A recent survey by TMF Group found that over a third (34%) of senior executives from private equity firms have said that their most recent cross-border carve-outs failed to deliver on expectations. A further 24% said that costly overruns significantly impacted the deal.
Legal and regulatory issues were the most cited reason for failure, followed by misalignment of operating models.
There are also geographical complexities to consider when separating out a business from its parent when several jurisdictions are involved.
This webinar will take a deeper dive into the figures published from the survey, explore the advantages and challenges of carve-out deals and also assess the future outlook.
Discussion points include:
● Why are carve-out deals attractive for PE funds? As these deals become more attractive to managers in the current environment, how can PE firms prove that they are the right buyer?
● What is the main reason why carve-outs have not been going to plan?
● What are the challenges of cross-border carve-outs? What foundations must be laid for long-term success?
● How does the legal process differ for carve-outs as opposed to buyouts? What are the challenges?
● How can managers avoid overruns and additional costs?
● How could carve-out deals change in the future? Are there ways in which processes could be streamlined to avoid delays or ensure that greater costs are not incurred?
Tristan Nagler, MD at Aurelius
Ben Fielding, Market Head of BD - UK & Ireland at TMF
Talya Misiri, Editor at Real Deals
Brian Smarsh, Partner at White & Case
Paul W. Bowen, Associate General Counsel at ASP