M&A advisory · 2024
Carving out a business, cleanly
Form Chemicals
$28M
Deal reprice
84%
Synergies validated
Day 100
Separation
Overview
Buy-side commercial diligence and carve-out planning for the acquisition of a specialty division from a larger chemicals group.
The challenge
Our client had signed exclusivity on a $340M carve-out but the target's standalone economics were opaque — costs were shared with the parent, key contracts were commingled, and the synergy case rested on assumptions nobody had tested.
Our approach
We ran commercial and operational diligence that reconstructed the target's true standalone P&L, stress-tested the customer base and contract transferability, and built a Day-1-to-100 separation and integration plan with a bottoms-up synergy model.
The outcome
Diligence surfaced a working-capital shortfall and an overstated synergy line, which repriced the deal by $28M in our client's favor. The separation ran to plan and the business hit its Day-100 targets with no supply interruption.
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