Carve-out and divestiture playbooks gaining traction ('Year of the Carve Out')
Key Questions
What is the 'Year of the Carve Out' according to KPMG UK?
KPMG UK has declared 2026 as the 'Year of the Carve Out.' Carve-out and divestiture playbooks are gaining traction, emphasizing pre-sale unlocking, execution, transition service agreements (TSAs), cost transparency, and post-close KPIs structured around evolution, shared baselines, portfolio strategy, and 'Creating Total Value'.
Why have spinoffs and roll-ups shown strong performance?
Houlihan data indicates spinoffs from 2019-2025 outperformed the market. Roll-ups like Zayo, involving 45 deals and achieving 8.5x returns, exemplify this trend, alongside actions like Teleflex accelerating a $1B buyback before portfolio sales.
What preparations are recommended for audit and risk committees in carve-outs?
Audit and risk committees are urged to establish readiness gates, scrutinize TSAs, and conduct cost and uplift testing. This ensures preparedness amid rising divestiture activity, as seen in HSR filings hitting 203 in March 2026 and Ovintiv's $3B Anadarko asset sale to strengthen its balance sheet.
KPMG UK declares 2026 'Year of the Carve Out'; playbooks emphasise pre-sale unlocking, execution, TSAs, cost transparency, post-close KPIs (structured evolution/shared baselines/portfolio strategy/'Creating Total Value'). Spinoffs (Houlihan 2019-2025 outperformance) and roll-ups (Zayo 45 deals/8.5x); Teleflex accelerates $1B buyback pre-portfolio sales. Audit/risk committees urged for readiness gates, TSA scrutiny, cost/uplift testing.