Mergers, Acquisitions and Divestitures by eprentise

For divestitures, the more embedded the unit is, the more complicated the carve-out is. It is difficult to arrive at the value of a carve-out deal, and to determine the accurate evaluation of the assets.

Some parts of the business are harder to package because they’re not free-standing with fully stand-alone, audited financials, and the EBITDA could be different for a stand-alone company. Many times, there’s not an EBITDA established for what’s being carved out.

In a divestiture, you need to rip out part of the company, and then quickly stand it up again. In many cases, back-office functions might have to be recreated from scratch.

With eprentise software, there’s no need to start over. The child company will maintain continuity of operations as a stand-alone entity with all history, familiar data, and familiar systems.

When is the right time to get started?

• For the seller: prior to identifying possible buyers
• For the buyer: as part of due diligence before committing to the investment

What do you need to get started?

• Access to seller’s Oracle® E-Business Suite Environment
• Data scope analysis phase services – determines what is being sold from the seller, and what assets the buyer is purchasing
• Software licenses