Global-Chemical-Company

Use a Turnkey Carve Out Solution to Enable Portfolio Optimization

ISG supported a global chemical company to setup standalone business and IT operations, allowing it to carve out an existing business independent from transaction scenario and acquirer capabilities.

Opportunity
Opportunity

This global chemical company had several carve-out opportunities to drive portfolio optimization activities. It desired a turnkey carve-out to define and setup a landscape. Its goal was to enable business operations for key functional services, including IT, finance, procurement and human resources (HR). It wanted to build up, migrate into and operate the landscape based on independent and transferrable contracts. Its previous landscape was fully integrated with the business setup of a large organization. The new carve-out solution needed to be simplified and “fit for purpose” to meet the needs of the smaller business portfolios being divested. The scope of the engagement included both IT (enterprise resource planning (ERP), human resources (HR) IT and other applications;  IT infrastructure; IT support, etc.) and business process outsourcing (BPO) (finance and accounting (F&A) operations; procurement operations; HR operations, including payroll).

Imagining IT Differently
Imagining IT Differently

ISG defined a standardized and streamlined contract architecture, one which is applicable for the seller in the period until Day 1 (during the migration phase) and the following run phase for the acquirer.

We executed a fast-track contracting approach (request for solutions/proposals (RFS/RFP)) to award a solution provider for a first project and to establish a framework for future carve outs. ISG used a service catalogue-based approach with a modular contract structure to ensure the divestments were ready to use and ready to transfer.

Button-CS-Future
Future Made Possible

  • The company received a turnkey carve out solution which is independent from specific transaction scenario and acquirer capabilities, making it repeatable, scalable and flexible.
  • The carve-out solution is designed and built jointly by the company (seller) and the turnkey solution provider during a migration phase prior to Day 1.
  • At the date of closing, the company was ready for its organizations, systems and processes to go live and for the outsourcing relationship to be handed over to the acquirer.
  • The turnkey solution can be operated independent from the company already during divestment period.