Fortune 1000 Industrial Conglomerate
Case Studies/Mergers & Acquisitions
ManufacturingMergers & Acquisitions

Fortune 1000 Industrial Conglomerate

Clean technology separation completed 3 months ahead of TSA deadline

A Fortune 1000 industrial conglomerate divested a $400M division. We led the technology carve-out — from due diligence support through TSA exit — delivering a fully independent technology environment three months ahead of the contractual deadline.

The Challenge

The divested division had been deeply integrated into the parent company's technology ecosystem for over 15 years. Shared ERP (SAP), shared Active Directory, integrated supply chain systems, a common data warehouse, and cross-divisional network infrastructure created hundreds of dependencies that needed to be unwound. The TSA was structured for 18 months with escalating costs — every month of early exit represented significant savings for the buyer. The PE acquirer's investment thesis assumed technology independence within 12 months, but preliminary estimates from the parent suggested 24+ months was more realistic.

Our Approach

During pre-close due diligence, we mapped every technology dependency between the division and the parent — 347 distinct integration points across 42 systems. We classified each by complexity (simple, moderate, complex) and business criticality (critical, important, low), which allowed us to build a separation plan sequenced by risk and interdependency.

We designed a target-state architecture using cloud-native services rather than replicating the parent's legacy on-premises infrastructure. This was a deliberate decision to use the separation as a modernization opportunity — building a technology foundation that would serve the business for the next decade rather than perpetuating legacy patterns.

We executed the separation in waves: identity and network first (enabling all subsequent work), then email and collaboration, then business applications, then ERP and data warehouse. Each wave had a detailed cutover plan, rollback procedures, and validation checklists. We ran parallel operations for critical systems during transition and conducted weekend cutovers for systems that required downtime.

We negotiated TSA service level amendments with the parent to maintain quality during the transition, and established governance meetings with clear escalation paths.

The Results

TSA exit completed in 15 months — 3 months ahead of the 18-month deadline, saving the acquirer approximately $2.1M in TSA extension costs.

Zero business disruption — no unplanned outages or data loss during the entire separation. Operations continued normally throughout.

$1.4M annual savings — the cloud-native target architecture reduced ongoing technology operating costs by 22% compared to the allocated parent company costs.

Modern technology foundation — the separated entity now operates on a modern, cloud-native infrastructure that supports the PE sponsor's growth plan without the technical debt of the parent's legacy systems.

Clean data separation — all 347 integration points cleanly severed with data fully migrated and reconciled against source systems.

Enterprise blueprint being redesigned

Ready to redesign how your enterprise works?

Let's talk about where AI fits into your organization — and where it doesn't yet.