Insight: Our approach to carve-outs

Our approach to carve-outs: Sullivan Street Partners is proficient in effective execution when it comes to carve-outs. Four out of seven of our large deals to date have included carving out a division, separating the organisation and building new support functions. We have internal and external teams that really understand the pace of change, urgency, and determination that is needed to deliver a successful carve-out.

Richard Sanders, Managing Partner and Co-Founder: “Once you have understood the business and spoken with the leaders and employees that are about to be affected, it becomes clear where a carve-out needs to make change and where it needs to recreate what was already there. The distinction between recreating the existing parts and attempting new change is critical. We ensure that well-meaning suggestions for small improvements do not interfere with the wider transition. This is key because you are changing multiple systems and processes, as well as affecting hundreds of peoples’ jobs; you cannot afford to introduce non-essential complexity to the process.”

Sullivan Street’s approach to performing a successful carve-out comes from understanding each business from a deep operational perspective. We’re able to solely focus on the firm’s key processes and by doing so can simplify the separation process. Ultimately our goal is to ensure continuity for the company’s core business. Improvements can happen later.

A clear roadmap with achievable timescales is essential, as is resilience in the face of new challenges. However, above all else, trust between Sullivan Street, the change team, management, and staff drives the success of a carveout. Strong bonds of trust ensure that nothing falls between the cracks and that together you deliver a step change towards independence; a change process that is often the biggest many will face in their entire careers.