Use this template to quantify how much it will cost the carved-out entity to operate independently. Populate one workbook tab per cost category so reviewers can trace every adjustment from parent P&L to standalone EBITDA.
Executive Summary
- Total current-state costs reported in parent accounts
- Total standalone costs after all adjustments
- Net increase or decrease versus parent allocations
- Key cost drivers (top three)
- Planned mitigation actions for material increases
Cost Category Schedule
Cost Category — Identifies the relevant function or line item. Example: IT Infrastructure
Parent Actual (Year-n) — Expense amount recorded in the parent company’s general ledger for the most recent fiscal year. Example: $7.2 million
Allocation to Business Unit — Portion of the parent expense historically attributed to the carve-out perimeter. Example: $2.0 million
Parent Overhead Removed — Cost elements that will not transfer to the carved-out entity. Example: –$0.5 million
Incremental Stand-Alone Cost — New expense the carved-out entity must bear to replace parent services. Example: $1.8 million
TSA Cost (Year 1) — Fee payable to the parent for transitional services during the first year. Example: $0.9 million
Net Stand-Alone Cost — Total expense after all adjustments = Allocation – Overhead + Incremental + TSA. Example: $4.2 million
Notes / Source — Reference to cost-allocation drivers, assumptions, and supporting files. Example: User count; IT_Alloc_Workbook.xlsx
Incremental-Cost Detail
- Personnel
- New C-suite hires, controller, treasury, internal audit
- Headcount numbers, salary bands, benefit loading factors
- Systems and Licenses
- ERP, HCM, CRM, cybersecurity tools
- One-time implementation vs. annual run-rate fees
- Professional Services
- External audit, tax compliance, legal counsel
- Retainer vs. project-based fees
- Insurance
- D&O, property, casualty, cyber
- Premium quotes and broker commissions
- Facilities and Utilities
- Office leases, data-center racks, warehouse space
- Square-footage assumptions and lease terms
TSA Cost Tracker
- Service description
- Annual fee
- Expiry date
- Exit readiness status (Green / Amber / Red)
- Replacement plan (in-house build, third-party, extend TSA)
Standalone EBITDA Bridge
- Parent reported EBITDA: $85.0 million
- Less: corporate allocations added back: – $12.0 million
- Add: incremental stand-alone personnel costs: + $6.5 million
- Add: incremental stand-alone systems and license costs: + $4.0 million
- Add: TSA fees (Year 1): + $2.1 million
- Resulting stand-alone EBITDA: $85.6 million
Sensitivity Scenarios
- 10 % wage inflation
- Early TSA termination (six-month pull-forward)
- Cloud-migration savings vs. on-prem replication
Source Files and Ownership
GL_Extract_FY24.csv
• Owner: Finance Analyst
• Last updated: 15-Apr-2025
IT_License_Quote.pdf
• Owner: IT Lead
• Last updated: 10-Apr-2025
HR_Benefit_Loading.xlsx
• Owner: HR Lead
• Last updated: 18-Apr-2025
Approval Sign-Off
- Finance Lead
- PMO Director
- Steering-Committee Representative
Complete this template before releasing the data room or negotiating TSAs; update quarterly until all TSA services end.
