Building on the previous three parts of our “Business in a box” series, that looked at setting up a carve-out for success, and developing and successfully executing an optimal delivery model, we now publish the fourth and final part of the series. The fourth part focuses on avoiding divesting pitfalls.

Some of the highlights from the fourth part are listed below.

1. KPMG has identified the most frequently encountered pitfalls that drive approximately 80 percent of the issues associated with executing a carve-out.

2. These pitfalls fall into six categories: operational, people and communications, setting up a legal entity, joint planning, regulatory, and stranded costs related to transition service agreements.

3. By establishing clear separation guiding principles, sellers can begin to mitigate the pitfalls before they arise, and develop a decision-making matrix that empowers teams and functional leaders.

4. These separation guiding principles can help to minimize the volume of issues escalated to the carve-out’s Separation Management Office and executive steering committee.

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Business in a box series