Several rationales could drive a carve-out: focus on the core after a portfolio review, need to strengthen the balance sheet or free up capital to other businesses … A divestiture should be carefully considered, prepared and executed, both for extracting the right value of the asset and limiting side impacts on the core.

Emerton assists corporation in the different phases of the carve-out:

• Carve-out preparation and diagnostic: issues identification and assessment, overview of interdependencies between businesses, recommendation
• Carve-out roadmap preparation: detailed plan, phases and milestones, key responsibles, planning
• Business plan and business presentation material: topline potential, business plan design
• Carve-out execution

Context: Constellium is considering the sale of Carquefou plant business, provides technical solutions in extrusion and drawing of hard aluminium alloys for the aerospace industry.

Emerton support:

• Carve-out preparation
• Vendor due diligence report
• Co-design of the business plan with the seller
• Exit strategies options and proposed list of potential buyers (corporations and investment funds)

Results:

Aviatube business entity sold to the German investment fund Quantum partners