Carve-Out & Separation Analysis
Standalone financials for a business that has never been reported on its own — and the cost base it will actually carry after separation.
Discuss a deal Engagement modelsThe hardest financials to build
A division being sold out of a group rarely has clean standalone accounts. Shared costs, intercompany arrangements and group services all have to be untangled before anyone can value it.
- Standalone P&L and balance sheet. Built from group ledgers with allocations documented and defensible.
- Cost allocation review. Which group costs follow the business, which are stranded, and which a buyer will need to replace.
- Standalone cost estimate. What the business actually costs to run outside the group.
- TSA scoping support. Which services need a transitional arrangement, and for how long.
Outputs you receive
- Carve-out financial statements with every allocation basis documented.
- Bridge from reported group segment results to standalone carve-out results.
- Stranded cost analysis and standalone run-rate cost estimate.
- Schedule of intercompany and shared-service dependencies for TSA discussions.
Frequently asked questions
How long does carve-out analysis take?
Longer than standard diligence — typically two to four weeks, because the allocations have to be built and evidenced rather than extracted.
Can you work from group consolidation data only?
Usually yes, though transaction-level ledger detail produces a materially more defensible allocation than segment reporting alone.
Do you support both sides of a carve-out?
We act for one side per transaction. On the sell side we build the standalone view; on the buy side we test it.
Separating a business?
Send the group structure and segment reporting. We will scope the standalone build.
Book a consult Get the data-request listOr email abhishek.bhandari@zionadvisor.com directly.
The challenge
A carve-out is not a smaller version of a full-company diligence. The target has never reported standalone, the cost base includes services the group provided, and the working capital has to be rebuilt for the perimeter rather than the consolidated entity. Every one of those is a negotiation point at completion.