Viewed in Heidrick & Struggles
Carve-outs are strategic opportunities to unlock value and sharpen corporate focus—but only when done right. For CFOs and the C-suite, success means balancing speed, precision, and long-term vision while shaping a fully independent entity from the ground up.
Leadership tests
From leadership selection to system design and stakeholder communication, carve-outs are not just financial transactions—they are leadership tests.
To maximize value, CFOs must take the lead in building a stand-alone enterprise with fit-for-purpose systems, a clear capital strategy, and the right people.
An accurate org chart is essential early on—it aligns roles, clarifies accountabilities, and helps ensure the right expertise is in place across FP&A, treasury, tax, reporting, and internal audit.
1. Build Independence from Day One
The top priority for carve-out CFOs is exiting the Transition Services Agreement (TSA) as quickly as possible. This requires swift action to establish core financial functions, stand-alone cash flow management, and an ERP system.
A robust org chart ensures leadership gaps are filled fast and organizational capabilities are aligned for operational success.
2. Assemble a High-Impact Team
Recruiting for carve-outs can be challenging. Internal candidates may be hard to extract from the parent company, while external hires may hesitate to join a smaller, high-change environment.
Prioritize resilient problem-solvers with strong business judgment—especially in FP&A, where finance adds daily value. Update your org chart as roles evolve during the transition to maintain clarity and momentum.
3. Set Clear Expectations and Communicate Constantly
Transparency with shareholders, boards, and employees is essential. Stakeholders need clarity on progress, goals, and risks—particularly when uncertainty is high.
CFOs must be strong communicators who can build trust and keep the team aligned through rapid change.
4. Shape a Culture That Matches the Strategy
Cultural misalignment can sabotage even the best strategies. Carve-out leaders must intentionally shape new norms and behaviors that suit the smaller, more agile company. This includes discarding legacy habits from the parent organization that no longer serve the new entity.
Action for the C-Suite- Invest early in the carve-out org chart and leadership bench.
- Treat the carve-out not as a spin-off, but as the launch of a new, high-performing company.
- Ensure your CFO has operational experience, transaction readiness, and the mindset to lead through ambiguity.
We thank Alyse Bodine and Samuel John, partners, and Claire Higgins and Anna Renslo, principals at Heidrick & Struggles, for their inspiring and insightful original article on carve-outs.
