Operational Certainty for PE-Backed Carve-Outs
Carve-outs create value when separation is executed cleanly and management can focus on the investment plan from day one. The operational risk is distraction: management teams firefighting TSA dependencies, working capital deteriorating while attention is elsewhere, IT issues blocking the exit.
We eliminate that distraction. Across 40+ PE-backed separations in industrials, manufacturing, and business services—typically £1-5m EBITDA—we’ve delivered clean TSA exits on schedule while EBITDA improved through the transition. Management executes the investment plan because operational delivery is certain.
We work with PE firms where separation complexity requires operational grip to protect value creation. Pre-close, we validate separation plans and provide TSA cost and timeline estimates investors can rely on when signing the SPA. Post-close, we take accountability for delivering clean exits from parent dependencies while protecting EBITDA and covenant headroom.
Operating Partner Support
Management teams create value when they’re focused on the investment plan—not managing operational dependencies inherited from separation. We ensure that focus exists from day one.
For a £16m precision engineering business carved out of a listed German parent, we delivered full IT and ERP separation in six months while reducing operating costs by 16%. Management spent their first year building the sales pipeline and implementing lean manufacturing. No TSA overruns. No working capital crises. No distraction from the plan.
Our work includes separation readiness assessment pre-close, hands-on delivery of TSA exit post-close, IT/ERP carve-out (ISO27001 certified), cash and working capital control, and board-level oversight to keep investment plans on track.
Management teams hit revenue and EBITDA targets through the transition, not despite it.
Cash Management
Covenant headroom depends on working capital performance, which depends on visibility. We provide that visibility using Phocas Analytics—delivering credible 13-week cash forecasts that drive operational decisions and maintain covenant compliance.
Management sees where working capital is leaking, where receivables are aging, where inventory is building. They identify release opportunities before liquidity constrains investment decisions. Choices are made on cash reality, not optimistic assumptions.
For portfolio companies navigating separation while executing growth plans, this visibility maintains covenant headroom and protects investment optionality.
Secure IT Services
Post-carve-out, IT must meet cyber insurance requirements, pass audit on data security and backup, and operate independently of parent systems. We deliver audit-ready infrastructure that meets these requirements with predictable costs and no parent dependencies.
This includes ISO27001-compliant security controls, tested backup and disaster recovery, Microsoft 365 deployment and management, cyber insurance readiness, fixed monthly pricing, and fractional CIO support for investment decisions.
We remove IT risks from investor and insurance due diligence, resolve TSA IT dependencies, and free management from operational IT firefighting.
Track Record
£16m precision engineering carve-out
Full IT/ERP separation in 6 months. Operating costs reduced 16%. Management executed growth plan without operational distraction.
£8m industrial services carve-out
EBITDA improved from £1.8m to £2.5m (39%) over 18 months while delivering complete TSA exit.
£12m manufacturing carve-out
£500k+ annual cost savings from IT and ERP optimization. Clean exit from parent dependencies in agreed timeframe.