Planning for a Successful 'Carve Out' Acquisition by Beth English

You've just been notified that your company is purchasing a large business unit from another company, and you've been placed in charge of moving the IT components to your organization without disrupting business and keeping all aspects of your organization secure. This type of arrangement is commonly referred to as a "carve out," and it requires extensive planning and forethought to navigate the complex, competing requirements.

Complicating and Uncomplicating a Carve Out

A carve out is the process of transitioning all aspects of IT from the sold business unit to the purchasing company during a defined period of time, with specific guidelines that are defined in a Transition Services Agreement (TSA) document that's agreed upon by all relevant parties. The TSA is a legal document that allows the selling company to provide IT, financial, HR, and other corporate services for a period of time with conditions on what's allowed and restructured by both parties.

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