From Carve-Out to Competitive: Why PE-Backed Companies Choose NetSuite
In the dynamic landscape of private equity (PE), carve-outs—where a parent company divests a business unit—present both challenges and opportunities. These transitions require swift action to establish independent operations, often under tight timelines dictated by Transitional Services Agreements (TSAs). NetSuite's cloud-based ERP solutions have proven instrumental in facilitating these complex processes, enabling PE-backed companies to achieve operational independence efficiently.
The Carve-Out Challenge
Unlike full acquisitions, carve-outs often involve business units that lack standalone systems. This absence necessitates the rapid implementation of new technology infrastructures to ensure business continuity post-separation. Delays or missteps can lead to increased costs and hinder the realization of investment value.
NetSuite's Strategic Advantage
NetSuite offers a scalable, cloud-based ERP platform that accelerates the transition process. Its SuiteSuccess methodology provides industry-specific best practices, allowing for rapid deployment and reduced risk. By consolidating financials, CRM, supply chain, and more into a unified system, NetSuite ensures that carved-out entities can operate efficiently from day one.
Real-World Applications
Consider the case of Dollar Shave Club. After its acquisition by Nexus Capital Management, the company faced the challenge of separating its retail operations from Unilever's systems. With a one-year TSA in place, Dollar Shave Club leveraged NetSuite to establish independent retail processes, ensuring a smooth transition without disrupting business operations.
Similarly, Bose Professional, upon being carved out by Transom Capital, required a robust ERP solution to support its global operations. By implementing NetSuite, Bose Professional, facilitated a seamless transition and positioning the company for accelerated growth.
Carve-outs are complex endeavors, but with the right technology partner, they can be executed efficiently and effectively. NetSuite's comprehensive ERP solutions provide the infrastructure necessary for PE-backed companies to achieve operational independence and drive long-term success.
Support Your Suite is committed to assisting PE firms and their portfolio companies in navigating these transitions. Our expertise in NetSuite implementations ensures that your carve-out processes are streamlined, compliant, and poised for growth.
