Key Takeaways
- • ParkerGale's Ryan Milligan and colleague Kevin "KG" Gorman discuss corporate carve-outs, in which private equity buys a business unit from a larger parent company.
- • Gorman has closed two carve-outs in the last couple of years, including Comperemedia from Mintel and ParkerGale's carve-out of HiBid, plus a complex deal from his investment banking career.
- • The discussion identifies determining exactly what is being acquired as the hardest part of a carve-out, often requiring a line-by-line separation of assets and operations.
- • The episode also addresses how sellers decide to divest units, how to price a business that does not stand on its own, and why carve-outs take longer than expected.
Summary
In a podcast episode titled "Corporate Carve-Outs 101," ParkerGale's Ryan Milligan interviews his colleague Kevin "KG" Gorman on the mechanics of corporate carve-outs. According to the episode description, the central challenge in a carve-out is defining the perimeter of the transaction: determining precisely which assets, operations and liabilities transfer to the buyer and which remain with the parent. The source characterizes this as often a line-by-line exercise.
The conversation covers why sellers choose to divest business units, how a private equity buyer prices an operating unit that is not standing on its own, and why these transactions typically take longer than participants expect. Gorman draws on his experience closing two carve-outs in the last couple of years, including the acquisition of Comperemedia from Mintel and ParkerGale's carve-out of HiBid, as well as a complex transaction from his earlier investment banking work.
The episode also examines how artificial intelligence has changed the deal process, with the source noting effects that are both beneficial and problematic. No specific figures on deal values or timelines are provided in the source material.
The conversation covers why sellers choose to divest business units, how a private equity buyer prices an operating unit that is not standing on its own, and why these transactions typically take longer than participants expect. Gorman draws on his experience closing two carve-outs in the last couple of years, including the acquisition of Comperemedia from Mintel and ParkerGale's carve-out of HiBid, as well as a complex transaction from his earlier investment banking work.
The episode also examines how artificial intelligence has changed the deal process, with the source noting effects that are both beneficial and problematic. No specific figures on deal values or timelines are provided in the source material.
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