Carve-out transactions — Approaching due diligence with a scalpel

Description

Abstract: In a carve-out, a company sells a subsidiary, division, facility, product line or other portion of its business. These transactions appeal to buyers seeking valuable businesses at bargain prices, as well as to sellers looking to shed noncore business units. But to be successful they require intense due diligence. This article examines the special considerations involved, from financial information to human resources to technology and intellectual property issues.