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As markets slowly recover following the Covid-19 crisis, many businesses will be considering new strategies for structuring their operations and their portfolios. Their focus will be on reinforcing their balance sheets against future market disruptions and economic anomalies, reducing costs, and optimizing operational efficiency. To succeed, leaders will need to aim for agility in their strategic portfolios. In this paper, KPMG and The Edge examine 45 public capital market carve-outs from the US, Europe, UK and Australia from the past 5 years, analyzing the potential financial and performance outcomes and other aspects of these structures.

Select highlights:

  • Structure and use of proceeds can have a major impact on value and the ability of a carve-out to catalyze organizational growth
  • Mean share price after just 1 year for carve-outs where the ultimate parent does not retain control is significantly higher compared to cases where control is retained
  • Carve-outs create more shareholder value if a stand-alone entity is created with true independence

Specific to M&A specialists, this report discusses the five key considerations that management and boards need to think about if they are considering a carve-out within their own business. Use of proceeds, share price performance, post-listing control and other structural dynamics: start a conversation and share this report with a client today.