Modular Carve-Out Assessment Unlocks Multiple Divestiture Pathways
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December 09, 2025
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Preparing for the potential sale of one or a combination of its three global business units, an oil and gas services provider required support to evaluate separation complexity, entanglement risks and operational interdependencies across multiple carve-out scenarios. FTI Consulting was engaged to perform a complex and modular carve-out assessment to equip the company with multiple divestiture pathways to go to market with.
Our Impact
- The client received a robust current-state operating model assessment for each business unit and a detailed view of the supporting shared support structure, as well as a comprehensive list of critical entanglements across employees, contracts, technology, facilities and assets. Our deliverable clarified previously unallocated and ambiguous cost information, enabled precise cost attribution across the business and confirmed the operational implications of the potential transaction perimeters.
- The holistic sell-side carve-out diligence report developed by FTI Consulting provided the client with a market-ready view of operational, financial and functional separation considerations across all sale permutations and was built with modularity in mind, allowing the client to share the full package or selected sections during early buyer conversations.
- The modular carve-out assessment expanded the pool of potential buyers by providing flexible divestiture configurations and enhanced buyer preparedness by proactively identifying separation hurdles and mitigation strategies, accelerating the sales process and reducing execution risk.
- Equipped with insights on the relative degree of operational interdependencies and separation complexity for each carve-out scenario, the client was able to prioritize divestiture options based on costs, execution readiness, potential risks and level of separation effort required.
Our Role
- FTI Consulting conducted a structured assessment of operational, financial and back-office dependencies across the three business units, including a detailed review of the shared support structure and cost allocation methodologies.
- The team identified key separation risks and developed mitigation strategies, including a summary of all shared service support and entanglements outside each potential deal perimeter, an assessment of headcount dependencies and an outline of service replacement requirements for each business unit.
- Our experts evaluated separation complexity and standalone requirements across multiple divestiture scenarios, ensuring modularity and flexibility in potential deal structures, and developed scenario-specific considerations to inform buyer discussions and define transaction perimeters.
- FTI Consulting produced a comprehensive sell-side carve-out diligence report to support the client’s go-to-market materials, facilitate informed buyer diligence, help expand the pool of potential buyers and prepare an accelerated sale process.
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Published
December 09, 2025
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