Successfully Managing Carve-Out & Integration

Carve-outs can create significant value. The critical success factor in a carve-out is defining the precise scope of the unit to be carved out, and making choices about the priorities relating to the carve-out process itself: speed, quality or value.

Post-merger integrations pose great challenges for many companies. Company acquisitions fail time and again due to an inadequate integration strategy. Strategic planning at an early stage, an autonomous integration team and transparent communication are the critical success factors.

My clients can generate significant value from this methodical and structured approach.

Carve-Out and daily business: a difficult combination of sorts

A carve-out process is very complex and requires a great deal of care in preparation and implementation. In many cases, the time and costs involved in extracting (and sometimes selling) company parts are underestimated. The entire carve-out process usually takes between six and eighteen months and often takes place under considerable competitive pressure.

Reasons for a carve-out:

Maximising profit
Saving cost and achieving synergies – for example by becoming closer to the customer
Increasing the speed of innovation and thereby achieving greater productivity

Since there are usually no internal human resources available for planning and implementation of a carve-out & integration process, an experienced and highly qualified Interim Manager can make the difference between success and failure of the process.

The first critical success factor is the Interim Manager being chosen and empowered by the board of directors to initiate the necessary steps. The second success factor, inside the area of competence of the Interim Manager him- or herself, is good leadership and constructive cooperation with employees.

My focus is on execution

My range of services is aimed at board members and managing directors who need temporary support in their company. In my interim mandate, the focus is not on consulting, but on the implementation of your goals. To this end, we agree in advance on a concept and we establish milestones and KPIs.

During my interim mandate, I will be your hands-on process manager and problem solver, and you may expect me to be a moderator and leader for your employees.

In execution, it is important to separate all workflows of the affected business to be carved out that are closely linked with the parent company. To do this, I analyze the business and processes and identify the key people.

Teams and workflows have to be reorganized and decision-making powers and responsibilities have to be determined.

Another important part of the carve-out process is the transfer of contracts and IP and trademarks, as well as other legal and tax issues. Experience in dealing with auditors, lawyers and tax consultants and - in international projects - having intercultural competence are important key competencies in carve-out and integration processes.

Being acquainted with extensive best practice experiences in diverse corporate cultures, as a sparring partner for CEOs I show potential for improving processes in the context of a restructuring. In addition, I give recommendations as to which resources should be invested in, for example in marketing activities or in commissioning agents to acquire new customers. I benefit from my many years of project and international management experience. I am familiar with all aspects of the business.

Carve Out & Integration:
Lift & Shift - Method

Noguer Consulting Carve Out Process Grafik Shadow

Before Spinoff

After Spinoff

Carve-Out and Integration are a „People Business“

Usually, a carve-out & integration process is a devisive experience for the employees concerned because it means they have to give up the familiar and move to another city or even another country. The fear of a possible job loss and new owners creates resentment and resistance in the workforce. However, in my experience, the biggest pushbacks, if any, come from senior managers wanting to “protect their turf”. As a carve-out leader I am also an arbitrator, my job being to discuss the imminent change in detail with all stakeholders, including the involvement of the works council.

Employees having to adjust to a new boss is inherent to all transformation processes, and when they happen across national borders, Intercultural problems become a complicating matter. In my performance (as Interim Manager) I benefit from my ability to develop human relationships based on trust, discretion and mutual credibility.

It is important to me as interim manager to lead fairly and transparently, to address conflicts openly and to resolve them with empathy. In addition to having the backing of the Board of Directors, good cooperation with employees is an important prerequisite for the successful completion of any carve-out project.

Interim managers on international, cross-border projects need to be endowed with a feel for other cultures. I bring to the table the required flexibility and adaptability and also an understanding of complex political contexts. I have a talent for performing and delivering results in an unstructured environment.

I would be happy to inform you about my range of services on Carve Out & Integration.

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