Post-Close Value Creation
Fortune 200 HVAC Company | Carveout Management
The acquired entity had considerable entanglements with the $25 billion parent company and Liberty was engaged to play a critical role in the initial diligence and carveout delivery
Impact At A Glance
Transitioned 1,500 Employees
With minimal impact, fully transitioned 1,500 employees to the new environment with data, devices, and accounts maintained
Executed Multi-National Carveout of 100+ Apps
Fully separated a complex environment with over 100 applications and core ERP entanglements on-time
De-Risked Acquisition & Accelerated Post-Close Growth
Supported the Buyer through the diligence and post-close process with their priorities in mind
Project Overview
An industry leader in multinational commercial and residential services sold a full service & product vertical to a PE firm that intended to make the business unit a standalone enterprise with minimal disruption and maximum flexibility for growth as a portfolio company. This presented a number of challenges given disparate application landscapes, key ERP entanglements, and a considerable user base of employees that needed to be seamlessly transitioned.
The Business Problem
A private equity firm bought an entire business unit from the $25 billion parent company and planned to establish a portfolio company to run the isolated service and product offering vertical as a standalone business. The vertical had a large amount of integration with the parent company, most notably their disparate ERP systems. Additionally, 1,500 employees needed to have all data, devices, and accounts migrated to a greenfield environment. The carved out entity required IT and operations advice, program management, assistance with vendor selection, and long-term strategic planning for the technical ecosystem. The deal framework had a 12-month TSA period, a critical timeline to established the separation from the parent company and ensure proper IT budgeting after independence.
Our Solution
Liberty deployed a team of four consultants to complete the original due diligence on the Target Company for the PE firm, then arrived at the client shortly after ‘Day 1’ of the deal, when the TSA 12-month countdown began. By the following year, all systems were separated, saving the portfolio company over $750k / month if they had run over.
This included implementing a highly bespoke network, establishing greenfield hosting, training new IT hires, standing up a service desk, migrating all user and enterprise data, and ensuring 100+ applications were moved, tested, and functional.
Key Steps:
Liberty served the client through the purchase process with an in-depth technical and carveout-focused due diligence effort that gave the client confidence in execution feasibility and TSA alignment.
Separation began on Day 1 of the 12-month TSA period with Liberty-deployed consultants on site with a clear and executable framework for initiating the smooth transition to a single entity.
Multi-national operations at the carved out entity required exceptional program management cooperation and leadership throughout the TSA period.
The Outcome
Key Results:
Implemented a highly bespoke network to suit the target company’s needs
Established a greenfield hosting structure
Trained new IT hires to best prepare for object and area ownership
- Stood up a critical service desk within the new entity
- Migrated all user and enterprise data
- Ensured +100 applications were successfully moved, tested, and functional
Liberty Advisor Group played the key role in assisting the Buyer from the initiation of technical and carveout diligence through program execution. Clear priority alignment and deep industry experience in complex carveouts allowed the Liberty team to successfully execute within the TSA period, reach a fully independent steady state, and give the buyer confidence in operational excellence throughout the rigorous process.
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