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6 min read

Five questions to settle before you sell a division

Carve-outs rarely fail on price. They fail on shared systems, people and contracts nobody mapped early enough.

Start with what is actually shared

Before any buyer sees an information pack, list every system, supplier, licence and person the division shares with the parent. The length of that list sets your timeline more than any valuation does.

Decide what transitional support you can offer

Buyers will ask how long you can keep the lights on after completion. Agree internally what you can support, for how long and at what cost, so the answer is ready when the question comes.

Be honest about the standalone numbers

A division’s profit often depends on overheads it never paid for. Restate the accounts on a standalone basis early, or a buyer’s diligence team will do it for you, usually less kindly.

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