Executing Operational Due Diligence
for a Carve-Out Transaction
industry
Technology, Media & Telecom
pillars
highlights
- Validated carve-out assumptions through readiness and entanglement analysis
- Quantified standalone and one-time costs with full EBITDA and cash flow views
- Structured TSA framework across six functions to guide post-close transition
summary
Palm Tree was engaged to validate transition assumptions, quantify the full financial impact of a carve-out, and design a roadmap for post-close execution.
Through detailed operational due diligence, we assessed readiness, identified gaps, and structured TSAs to support a smooth transition for the new standalone entity.
results
Validated Carve-Out Assumptions: Identified gaps in cost assumptions, headcount, and system dependencies through detailed readiness and entanglement analysis.
Quantified Transition Costs: Built a comprehensive model of recurring standalone expenses and one-time carve-out costs, including an adjusted EBITDA bridge and year-one cash flow view.
Structured TSA Framework: Defined TSA requirements across six functions with timelines, cost ranges, and risk areas to ensure a smooth post-close transition.
conclusion
This engagement gave the buyer confidence in its transition plan, equipping management with a clear roadmap for standalone operations and ensuring financial and operational readiness post-close.
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