What are the benefits of working with Catalant for separation and carve-out engagements?

Catalant delivers seamless separation execution and accelerated timelines to independence by utilizing proven divestment frameworks. Engagements leverage veteran consultants with backgrounds at firms like Bain and McKinsey and corporate operators who replace theoretical advice with hands-on experience. A disciplined approach optimizes enterprise value realization, minimizing transaction risks and operational disruptions during complex corporate separations.

What type of work does Catalant do for separations and carve-outs?

Catalant conducts comprehensive separation readiness assessments, drafts standalone operating model blueprints, and executes structured cost analyses. Divestment experts design rigorous line-by-line separation roadmaps, manage critical talent retention protocols, and negotiate complex transition service agreements. Consultants coordinate post-close transition management offices to safeguard continuous operations.

What do corporate divestment and carve-out consultants do?

Carve-out consultants specialize in untangling complex business operations, designing standalone technology structures, and mitigating separation risks. Specialized advisors apply structured readiness assessments to analyze interconnected systems and functional processes. Experts produce detailed costing models and clear transition plans to protect core asset values.

How can enterprise boards resolve stranded costs and operational dependencies during a divestment?

Organizations resolve operational dependencies by executing rigorous separation diligence assessments that isolate shared software systems and infrastructure overlaps. Catalant consultants design tailored standalone operating models that quantify exact stranded cost fields. An upfront diagnostic allows leaders to negotiate explicit transition service agreements that preserve value before closing.

How do transition service agreements protect business continuity during corporate spin-offs?

Transition service agreements protect continuity by establishing clear operational boundaries and temporary support services between parent corporations and divested units. Catalant consultants embed explicit service-level targets and strict cost parameters. Meticulous sequencing prevents operational downtime, allowing standalone business units to establish independence securely.

How do carve-out consultants evaluate standalone operating costs?

Carve-out consultants evaluate standalone costs by conducting detailed bottom-up operational audits across people, processes, and technology platforms. Experts perform granular line-by-line cost analyses to isolate duplicate overhead expenses and hidden structural liabilities. Rigorous evaluation provides leaders with the precise visibility needed to finalize transaction terms.

When do standard financial separation plans fail to maximize corporate exit values?

Standard financial separation plans fail to maximize value when they focus exclusively on balance sheet separations without restructuring underlying operational workflows or system interdependencies. Catalant consultants eliminate the strategic vulnerability by deploying seasoned transaction executives. Implementing standalone readiness audits ensures the divested entity operates efficiently from day one.

How do transaction experts manage talent retention and leadership stability during workforce transitions?

Transaction experts manage retention by establishing clear change management communication channels and structured milestone performance targets during transition phases. Consultants support executives with targeted retention playbooks and localized alignment routines. Programmatic synchronization anchors critical personnel inside the independent entity, preserving essential operational capabilities.

What core components must be included in a corporate separation playbook?

A corporate separation playbook must include detailed readiness assessments, standalone operating model designs, and line-by-line separation roadmaps. Catalant consultants incorporate comprehensive transition service agreement frameworks and specific transition office guidelines. The structural elements enable separate divisions to navigate carve-outs seamlessly.

How do leaders track the ongoing financial success of a newly completed spin-off?

Leaders track success by implementing centralized transition dashboards that continuously monitor stranded cost reduction rates and milestone velocity indicators. Catalant consultants connect standard division outputs directly to value creation targets. Continuous oversight provides empirical data confirming that the independent business successfully delivers promised structural advantages.

Service Offering

Separation & Carve-Out

Whether you're divesting a business unit, spinning off a division, or conducting a carve-out, untangling complex business operations demands a deep understanding of how interconnected systems, processes, and people can be separated without destroying value. Catalant helps organizations realize full value optimization through:

Seamless separation planning and execution

Careful management of people, systems, and processes

Accelerated timeline to independence using proven frameworks

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Approach

Separation Strategies Designed for Impact

Separation diligence & planning

We lay the groundwork for a successful separation by conducting comprehensive separation readiness assessments. This includes targeted stand-alone operating model design and costing, stranded cost analysis, TSA planning, and Day 1 readiness definition. A PMO is established to drive governance, decision-making, and milestone tracking.

Carve-out execution support

Catalant manages the transfer of in-scope assets—including people, processes, systems, and contracts—to the standalone entity or buyer. We operationalize TSA support, ensure organizational restructuring aligns with strategic goals, and deliver transparent communication plans to maintain stakeholder confidence.

Post-close stabilization

Handling all aspects of TSA management and governance, we finalize TSA exit plans and transition away from TSA support. We execute stranded cost plans aligned to TSA exit and conduct lessons-learned workshops to refine processes and support leaders in embedding new practices and behaviors to sustain value creation.

Winning Together

Separation Use Cases

Problem

An insurance company preparing to transition into a standalone entity needed to improve its Third Party Oversight (TPO) process to mitigate business risks.

Action

The team remediated existing third parties in Phase 1, then developed and deployed a centralized TPO documentation repository with a comprehensive checklist and search functionality in Phase 2, along with training materials.

Results

The TPO process was strengthened, ensuring compliance, minimizing risks, and providing the client with an efficient, sustainable oversight system for future operations.

Global Industrials Business Unit Separation

A business unit of a global industrials company utilized a business separation project management consultant to manage, monitor and communicate the separation and stand activities in anticipation of divesting the business. Over 38 weeks, the consultant mobilized a team, developed the separation roadmap and workplans, and executed against them to successfully stand up and spin the divestiture.

PE Firm PMO for Carve-Out

A leading PE firm needed a PMO to guide a large carve-out, from playbook creation to execution. Working closely with firm leadership and the leadership at the carve out, the consultant ensured completion of all identified workstreams and developed artifacts to support the PMO function, providing regular updates for senior leadership.

featured experts

Separation & Carve-Out Consultants

Yvonne Gyimah

Catalant consultant

Ex-FTI partner, EY Parthenon, expert in mid- and large-scale deals

Myles Melnicoff

Catalant consultant

Ex-Deloitte M&A leader, 30+ deals, buy & sell side

Eric Pizzi

Catalant consultant

Ex-Altman Solon, former Head of Strategy at Nuance Communications

Yvonne Gyimah

Ex-FTI partner, EY Parthenon, expert in mid- and large-scale deals

CF Transactions Carve-Outs Co-Leader at FTI, built out the carve-out service offering.

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Myles Melnicoff

Ex-Deloitte M&A leader, 30+ deals, buy & sell side

Specializes in guiding organizations through complex separations, carve-outs, divestitures, and TSA support to ensure operational continuity and maximize value.

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