A key component of any divestiture is the preparation of the financial information around the carved-out business. Carve-out GAAP financial statements typically reflect the business operations being divested as if the carve-out entity operated on a standalone basis. These carve-out GAAP financial statements may be used for capital market transactions, to satisfy regulatory or financing requirements of the buyer, or to provide additional comfort to the buyer.
Preparing financial information for the business to be divested is one of the most complex issues in the execution of a sale or spin-off. So how do you proceed? Understanding the ins and outs of divestitures and the potential impact on both the buyer and the seller will pave the road to a successful transaction and realisation of deal value.
How PwC can help you seamlessly navigate the complexities of carve-out transactions and unlock greater value
- We assess and advise you on the financial reporting and accounting implications related to carve-outs.
- We deliver the insights you need to make the right decisions, leveraging the latest technology and data analytics tools.
- We can design and implement the roadmap to get you where you need to go, taking a holistic approach that considers your entire business.
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