Successful carve-out and establishment of an independent entity

In a very short space of time, we spun off a major division of a group in the energy sector and created an independent entity. Our transformation in 2022 was characterised by efficiency and a clear focus on minimising the potential impact on performance. The result? A smooth transition that shows that a strategic realignment does not necessarily have to be accompanied by a loss of speed.

Industry

Energy

Work area

Carve-Out

Year

2021 – 2022

Project duration

11 months

Employees

about 200

Challenge

Starting with the management of large amounts of legacy data, it required careful cleansing and structuring in order to lay the foundation for effective data management in the new company. In addition, the lack of certain experience and unadopted functions presented a hurdle that required detailed identification and possibly the development of new competences. The complex SAP IT system, which was originally designed for the entire company, proved to be too extensive for the smaller carved-out company, and so the IT infrastructure had to be adapted and optimised.

The lack of clarity in the existing contractual relationships and the extremely tight schedule for the carve-out were further challenging aspects. Last but not least, few experts were identified, which had to ensure an efficient transfer of expertise and experience. These complex challenges emphasise the need for thorough planning and an agile approach to ensure the successful transition to an independent entity.

Solution

In order to successfully overcome the complex challenges of the carve-out, a well thought-out solution strategy was implemented. This was based on early technical and business due diligence, which enabled a comprehensive analysis of the existing structures in order to identify potential risks and opportunities at an early stage. Based on these findings, targeted rebranding measures were derived, including marketing, communication and system adjustments to ensure seamless integration into the new corporate structure. In addition, a Transition Service Agreement (TSA) was concluded to enable a smooth transition and ensure ongoing support from the vendor.

The planning of a new system landscape and the selection of suitable service providers, taking into account the technical and economic approach, were decisive steps. The takeover of the central SAP components, including all delimitable data, was carried out in a targeted manner and a focus was placed on quickly establishing an agile organisational structure. Targeted measures were taken to strengthen the knowledge carrier team in order to retain essential expertise.

The immediate conclusion of all contracts with former suppliers and customers rounded off the solution strategy in order to seamlessly continue the business relationships. This comprehensive approach laid the foundation for a successful carve-out and enabled the successful development of the independent entity within the Group.

Result

The result of this comprehensive carve-out and the subsequent development of an independent entity within the Group is characterised by several significant successes:

  • Firstly, the targeted streamlining of the structure and organisation led to a more efficient and agile corporate structure. By clearly defining responsibilities, establishing an agile organisational structure and focusing on key business areas, the overall structure was streamlined, resulting in improved flexibility and responsiveness to market changes.
  • Secondly, a reduction in IT costs was achieved. The targeted takeover of the central SAP components and the optimisation of the IT infrastructure for the new independent unit eliminated redundant systems and introduced more efficient processes. This helped to reduce overall IT costs and utilise resources more effectively.
  • Thirdly, process flows were significantly improved. The prior analysis and optimisation of business processes as part of the technical and business due diligence enabled processes to be redesigned and made more efficient. The use of modern technologies and the implementation of best practices helped to increase the effectiveness and quality of the company’s processes.

Overall, the result was an agile, cost-efficient and well-structured company that is able to operate independently within the Group. Streamlining the structure, reducing IT costs and improving processes helped to strengthen competitiveness and lay the foundations for sustainable success.