Corporate Carve Outs Require More Due Diligence

Buying a complete chemical manufacturing business or company has become a fairly straightforward process, but over the last few years, many large companies have been selling off pieces of businesses in what has become known as a “carve-out transaction.”

due-diligence-47708379_sA carve-out transaction can be a bit more tricky. More due diligence is required. Sometimes the business being carved out will have shared assets, service, utilities and even shared management. It could even be just a product line. In many cases separate historic business information is unclear. It is not unusual to find that the carve out is little more than a technical package and a customer list.

These can be great acquisition opportunities, but they often come with a commensurate increase in risk.

Carve out transactions require significantly more due diligence than normal. The acquiring parties often do not have the additional resources or experience needed to do the work required. Chemvalon can provide cost-effective experience to help the acquisition due diligence process and as well as post-acquisition transition help.

If you are considering a carve out acquisition or sale, why not ask Chemvalon to help with pre-sale preparation or pre-acquisition due diligence. Chemvalon has a team of industry specialists capable of adding the extra horsepower your team needs to get the job done. Chemvalon can provide both buy-side and sell-side due diligence.