Too often, execution of carve-outs is performed by loosely connected functional groups that operate with an incomplete view of the deal’s scope, combined with a high volume of data and limited communication. So it’s not surprising that the success rate of strategy execution is incredibly low: 83 percent of strategies fail due to faulty assumptions and execution.
The operational structure that companies need to remain competitive today can make successful execution of deal strategy more challenging - especially in carve-outs. Because companies must function via highly integrated processes and systems in order to achieve their desired operating efficiency, executing a separation of these highly integrated components requires thorough planning and sensitive management.
