A single overlooked dependency can stall Day 1 operations. Use the following checklists—grouped by function—to confirm every critical system, data flow, and control is tested, signed-off, and ready before close.
IT & Infrastructure
- ERP: final cut-over rehearsal completed; batch jobs and interfaces validated.
- CRM: customer data migrated; user authentication verified; dashboards refreshing.
- HRIS and Payroll: employee master loaded; parallel payroll reconciled; tax IDs active.
- Network: new IP ranges live; VPN tunnels for TSAs operational; monitoring dashboards green.
- Identity & Access: new domain in production; MFA enforced; legacy trusts removed.
- Backup & DR: full restore test completed; RPO/RTO targets met; off-site replication enabled.
- Cybersecurity: endpoint protection deployed; SIEM ingesting logs; incident-response playbook updated.
Finance & Treasury
- General Ledger: chart of accounts open; posting periods set; close calendar distributed.
- AP & AR: supplier and customer masters validated; invoice templates re-branded; EDI feeds tested.
- Bank Accounts: new accounts funded; signatories registered; payment-file formats certified.
- Working-Capital Peg: baseline agreed; true-up mechanism documented; reporting template loaded.
- Tax Engines: indirect-tax codes configured; statutory reports generated without errors.
Supply Chain & Operations
- MRP/Planning: demand forecasts loaded; supply schedules aligned to new entity codes.
- Warehouse Management: bar-code scanners pointed to standalone database; pick-pack-ship flows tested.
- Logistics: carrier rate tables updated; waybill printers connected; customs codes validated.
- Quality & Compliance: SOPs reissued under new entity; certificates, permits, and ISO numbers on file.
Commercial & Customer Support
- Pricing and Discount Tables: migrated and spot-checked; promotions aligned to carve-out SKUs.
- E-commerce / Portal: DNS switchover completed; SSL certificates installed; test transaction authorised.
- Call-Centre Scripts: updated FAQs loaded; IVR routing reconfigured; agents briefed.
- SLA Dashboards: real-time metrics visible; escalation paths confirmed.
HR & People Operations
- Payroll Funding: cash call scheduled; payroll vendor test file accepted.
- Benefits: insurer eligibility files transmitted; helpline staffed.
- Facility Access: badges issued; turnstile readers updated; visitor procedures revised.
- Manager Toolkits: Day 1 talking points, org charts, and escalation contacts distributed.
Legal & Compliance
- Licences and Permits: transfer certificates received; numbers updated on websites and packaging.
- Contract Novations: customer and supplier consents logged; repository updated.
- Data-Privacy: processing-activity register amended; new privacy notices published.
- Board Governance: inaugural board meeting scheduled; resolutions for banking and signatory authority passed.
Sign-Off Protocol
- Each functional lead completes checklist items and attaches evidence.
- PMO reviews evidence and tags status Green / Amber / Red.
- Day 1 Command Centre accepts only Green items; Amber escalates to Steering Committee; Red blocks go-live.
Having every box ticked before legal close is the difference between a seamless Day 1 and an emergency war-room. Use these checklists as your non-negotiable readiness gate.
Request the Carve-Out Playbook
Table of Contents:
Table of Contents
1. Introduction and Overview
- 1.1 Purpose of This Playbook
- 1.2 Defining Carve-Outs (Divestitures)
- 1.3 Key Differences Between Carve-Outs and Other M&A Transactions
- 1.4 Common Drivers and Strategic Rationale for Carve-Outs
- 1.5 Overview of the Carve-Out Lifecycle
- 1.6 How to Use This Playbook
2. Strategic Considerations and Decision-Making
- 2.1 Evaluating the Carve-Out Rationale
- 2.2 Assessing Market Opportunities and Timing
- 2.3 Stakeholder Alignment and Governance
- 2.4 Risk Assessment and Mitigation Strategies
- 2.5 High-Level Financial Considerations
- 2.6 Sample Template: Carve-Out Feasibility Study
- 2.7 Checklist: Key Questions to Ask Before Deciding on a Carve-Out
3. Planning the Carve-Out Program
- 3.1 Establishing the Carve-Out Program Management Office (PMO)
- 3.2 Defining Scope and Objectives
- 3.3 Organizational Structure and Key Roles
- 3.4 Timeline Development and Milestone Planning
- 3.5 Resource Planning and Budgeting
- 3.6 Program Governance and Steering Committees
- 3.7 Tools and Templates: Carve-Out Project Charter and Planning Documents
- 3.8 Step-by-Step Guide: Setting Up the PMO
4. Financial Analysis and Preparation
- 4.1 Developing Carve-Out Financials (Pro Forma Statements)
- 4.2 Allocating Corporate Overheads
- 4.3 Working Capital Adjustments and Cash Management
- 4.4 Tax Implications and Structuring
- 4.5 Valuation Approaches for the Carve-Out Entity
- 4.6 Checklist: Financial Data Requirements
- 4.7 Template: Standalone Cost Analysis
5. Operational Separation and Target Operating Model (TOM)
- 5.1 Defining the Future State Organization
- 5.2 Critical Business Functions to Separate
- 5.3 Retained vs. Transitioned Capabilities
- 5.4 Cross-Functional Dependencies
- 5.5 Service Level Agreements and Transition Services
- 5.6 Template: Target Operating Model Blueprint
- 5.7 Step-by-Step Guide: Designing Your TOM
6. Legal and Regulatory Framework
- 6.1 Understanding Legal Entities and Corporate Structures
- 6.2 Regulatory Approvals and Filings
- 6.3 Contract Assignments and Renegotiations
- 6.4 Employee and Labor Law Considerations
- 6.5 Antitrust and Competition Law Considerations
- 6.6 Securities and Exchange Requirements (If Applicable)
- 6.7 Sample Template: Legal Due Diligence Checklist
7. Human Capital and Organizational Readiness
- 7,1 Workforce Mapping and Allocation
- 7.2 Talent Retention and Employee Engagement
- 7.3 Compensation and Benefit Alignments
- 7.4 Cultural Considerations and Change Management
- 7.5 Checklist: HR-Related Actions for Day 1 Readiness
- 7.6 Step-by-Step Guide: Conducting Workforce Transfers
8. Technology and IT Separation
- 8.1 IT Carve-Out Strategy and Guiding Principles
- 8.2 Inventory of Applications and Infrastructure
- 8.3 Data Migration and Security
- 8.4 Network and Systems Separation
- 8.5 Third-Party Vendor Contracts and Licensing
- 8.6 Checklist: Key IT Systems and Separation Activities
- 8.7 Sample Template: IT Separation Work Plan
9. Communication and Stakeholder Management
- 9.1 Communication Strategy and Governance
- 9.2 Internal Stakeholder Mapping
- 9.3 External Stakeholders: Investors, Clients, and Suppliers
- 9.4 Media Relations and Public Announcements
- 9.5 Message Alignment and Consistency
- 9.6 Change Management and Cultural Integration
- 9.7 Template: Comprehensive Communication Plan
10. Day 1 Readiness Planning
- 10.1 Defining “Day 1” Scope and Objectives
- 10.2 Critical Systems and Operational Checklists
- 10.3 Transition Services Agreements (TSA) Setup
- 10.4 Compliance and Regulatory Obligations
- 10.5 Business Continuity Plans
- 10.6 Template: Day 1 Checklist
- 10.7 Step-by-Step Guide: Ensuring Operational Continuity
11. Transition Services Agreements (TSAs)
- 11.1 Purpose and Structure of TSAs
- 11.2 Key TSA Terms and Service Level Definitions
- 11.3 Pricing and Cost Allocations
- 11.4 Governance and Conflict Resolution Mechanisms
- 11.5 Exit Strategy and TSA Sunset Provisions
- 11.6 Checklist: TSA Negotiation Points
- 11.7 Sample Template: TSA Master Document
12. Carve-Out Implementation and Execution
- 12.1 Integrated Project Plan for Separation
- 12.2 Managing Parallel Workstreams
- 12.3 Risk Management and Issue Resolution
- 12.4 Real-Time Reporting and Steering Committee Updates
- 12.5 Escalation Procedures and Decision Rights
- 12.6 Checklist: Weekly and Monthly Reporting Templates
- 12.7 Step-by-Step Guide: Project Execution Best Practices
13. Post-Close Stabilization and Operational Handover
- 13.1 Post-Close Governance and Operational Setup
- 13.2 TSA Management and Transition Offloading
- 13.3 Synergy Realization and Cost Management
- 13.4 Performance Tracking and KPIs
- 13.5 Revisiting the Target Operating Model
- 13.6 Checklist: Stabilization Milestones
14. Integration or Standalone Acceleration
- 14.1 Evaluating Long-Term Strategic Options
- 14.2 Standalone Strategy vs. Full Integration
- 14.3 Operational Maturity Roadmap
- 14.4 Value Creation Levers and Growth Opportunities
- 14.5 M&A Opportunities and Bolt-On Acquisitions
- 14.6 Checklist: Building Momentum Post-Carve-Out
15. Lessons Learned and Best Practices
- 15.1 Common Pitfalls and How to Avoid Them
- 15.2 Key Success Factors for Carve-Out Transactions
- 15.3 Industry-Specific Considerations
- 15.4 Checklist: Continuous Improvement for Future Carve-Outs