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