3. Implementation Phase
The implementation phase begins with the conclusion of the contract (signing) between buyer and seller. This is when the operational implementation of the carve-out usually begins. In this phase, it is essential to implement all steps of the detailed carve-out planning. As a rule, all parent company employees and the company’s part to be carve-out are informed about the sale and the carve-out at the time of signing. To keep the employees involved, and motivated, the messages concerning the sale and carve-out must be carefully prepared and communicated. Measures and incentives to secure high motivation of all performers involved are usually prepared and, if necessary, communicated already early in the carve-out preparation phase. Such measures should now also be considered for other employees depending on the situation. Transparent communication on the purpose and benefits of the carve-out and showing opportunities for future personal development and perspectives are significant important measures in this context.
If not already done during the preparation phase, the transition service agreements’ content must be drawn up and negotiated in detail with the buyer. The parent company must take appropriate precautionary measures to effectively provide the agreed services after the operational carve-out has been completed.
In preparation for the final handover of the carve-out property, a “Day-1 Readiness Check” must be carried out well in advance. The check verifies whether all areas are adequately prepared for Day-1 or Go-Live. The review includes, among other things, all TSA, the necessary communication with suppliers, customers, service providers, public bodies, banks and other business partners as well as the testing of the IT infrastructure and applications. The “Day-1 Readiness Check” often brings up unexpected challenges that can usually still be eliminated due to sufficient lead time and with a focused approach.
The handover (cut-over) for Day-1 or Go-Live must be planned in detail. However, due to changing framework conditions, unexpectedly arising new challenges, eventualities and circumstances, necessary deviations from the original cut-over planning may occur. In such cases, quick and precise decisions on how to proceed are essential for carve-out success. This is where the carve-out executive proves his worth. He/She usually takes the necessary decisions himself promptly and, with the CMO’s support, can also evaluate their effects on the entire carve-out.