2026年制胜分拆接力：从团队构建到价值交付的全程管理研究报告-

Winningthe

carve-outrelay:

Fromteamselectiontothefinishline

Designing,executingandwinningconsumerandindustrialscarve-outs

Howsellerscangettobettercarve-outoutcomes

Whatstructurescanbeusedtocarveoutanasset,anddeterminingwhich

providesthebestfitforyourtransaction

Howtobestarticulatethevalueofthecarve-outbusiness

Executingtheseparationinawaythatrealizesthemostvalue

©2026Copyrightowned

byoneormoreoftheKPMGInternationalentities.KPMGInternationalentitiesprovidenoservicestoclients.Allrightsreserved.Winningthecarve-outrelay

2

3

Winningthecarve-outrelay

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

WhenwereflectedonyearsofhelpingConsumer&Retailcorporatescarve-outbusinessesaroundtheworld,wefoundthebestwaytothinkaboutasuccessfulcarve-outisasarelay:

Awinningteamisbuiltlongbeforeraceday.

Athletesarechosenthroughconstant

performancetrackingandrehearsedforeveryscenario.

Incarve-outterms,thatmeansknowingyourportfolio,havingclearvalue-

creationmusclesinbusiness-as-usualandsettinguptherightgovernanceandcapabilitymixbeforethegungoesoff.

Agoodcoachreadstheraceandadjuststhepace.

Somerelayscallforanexplosivestart;othersdemandcontrolandconsistency,oralatesprint.

Likewise,everycarve-outneedstherightstrategy:whethertosprintwitha

‘business-in-a-box’,pacewitha‘partialstandalone’,conserveenergythrougha‘syntheticstandalone’orstayatthebackofthepackinitiallywithahardlatesprinttothefinish,aswithan‘integratedwithRemainCo’approach.

Thefirst50meterssetthetone.

Fast,disciplinedaccelerationmattersmorethansheerspeed.

Inacarve-out,thisiswherestrategy

turnsintoaction:buildingcleanfinancials,identifyingvalueleversanddemonstratingtractionwithclearvaluecreationplans

andbusinessseparationstrategy.

Teamsthatlaunchwithclearintent,crispcommunicationandalignedobjectivesarealreadyleadinghalfwaydownthetrack.

Championshipsarewonorlostinthehandover.

Forcarve-outs,thisisthetransferacross

differentphasesandultimatelytothebuyer—thepointwherepreparation,executionand

valueproofcometogether.

Acleanfinalexchangemeansrobustdata,

testedDay1readiness,andclarityonroles,

contractsandsystemssothatbothCarveCo

andRemainCokeeprunningatfullspeedafterthehand-off.

Dropthebatonhereandmonthsofhard

runningarelost.Getitrightandbothsidescrossthelinestronger.

Overview

Appendices

Carve-outs,likerelays,rewardteamsthatplanearly,choosetherightraceplan,getofftoagoodstartandexecuteeveryhand-offflawlessly.

Winningthecarve-out

relay:Fromstarting

blockstothefinishline

KPMG

March2026

MaketheDifference

..

4

Winningthecarve-outrelay

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Foreword

Don’tjustdivest.Wintherace.

Themostsophisticatedsellersrealizethatthedivestment

valueoftheircarve-outsissensitivetothearbitragebetweeneverydollarofCarveCoEBITDAimprovementbeingworth10–20xindealvalue(themultiple),versusthecostof

implementation.

However,fewsellersruntheirbestrace;theydon’tfullymaximizevaluebyarticulatingafullpotentialCarveCo.

Twolessonsstandout:

1.Theraceiswonorlost,longbeforethestarter’sgun.

Valuecreationneedstobebroughtforward,beforethedecisiontodivest,ideallyembeddedinongoingportfolioanalysis.Theearlieryoumovethevaluelevers,themoreofthempriceintothedeal.

2.Carve-outsaren’tanormalsprint.

Specializedracetacticsandhandoffsneedtobelearned.

Carve-outsarenotbusinessasusual(BAU)andrequireaspecificexecutionmuscletobebuiltinadvance.

Choosingtospin,sellorlistisastrategiccallthat

demandsitsowntool-set.AsuperpoweristoflexthismusclewhilesimultaneouslyexecutingBAU.

Mostcarve-outarticleswilltellyouwhereteamsstumble,orwhattheaccountingcarve-outguidancesays.Inthis

seriesweseektobuckthattrendandfocuson‘thehow’:

thedecisions,capabilitiesandsequencingthatturnacarve-outintoapremiumperformingdeal.

Wehaveorganizedthisseriesintofourchapters,whichanswerthefollowingkeyquestions:

•Chapter1.Selectionandpreparation(Portfoliostrategy)

Howcanweembedvaluecreationintoouryear-roundBAUportfoliomanagement,toensurewearealwaysfieldingthestrongestteamandmakeoptimal

divestmentdecisions?HowcanIbuildorganizationalcapabilitieslongaheadoftheraceday?

•Chapter2.Settingtheraceplan

(Carve-outstrategy)

Therearefourstrategicraceplansforacarve-out:

business-in-a-box,partialstandalone,synthetic

standalone(a),andintegratedwithRemainCo.HowdoIchoosetheplaybookthatbestfitsthedealand

positionsustowin?

•Chapter3.Gettingofftoagoodstart

(Buildingthevaluecase)

HowdoIperfecttheCarveCo,movingbeyondbaselineperformance,tocreateawinningpropositionthat

bidderswillfullyvalueandpriceintothedeal?

•Chapter4.Executingaflawless

exchange(Separationinpractice)

HowdoIchoosetherightseparationmodelsothatIcanruntheseparationandexecutethefinalhandoverwithprecision,ensuringminimumdisruptionand

maximumvalue,foraclearwin?

Thisseriesandthepagesthatfollowtranslateourreal-worldexperienceintoinsightsandtoolstohelp

organizationspushbeyondbaselinethinkingandcapturethegold-medalvalueacarve-outcanoffer.

Let’sgetstarted.

JavierRodriguez

GlobalHeadofStrategyKPMGInternational

JoshuaMartin

GlobalHeadof

TransactionServicesKPMGInternational

BarnabyRobson

Partner,HeadofValueCreation,ChinaHeadofDealStrategy,HongKong

KPMGinChina

Note:(a)Transitionaloperatingmodelcreatedforthecarved-outbusinessthatsimulatesfullindependencewithoutimmediatelyreplicatingallcorporatefunctions.

5

Winningthecarve-outrelay

byoneormoreoftheKPMGInternationalentities.KPMGInternationalentitiesprovidenoservicestoclients.Allrightsreserved.

©2026Copyrightowned

6

Winningthecarve-outrelay

Overview

Appendices

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Basedonaquantitativesurveyof700M&Adecision-makersworldwideconductedacross20countries.

KPMG’sGlobalM&AOutlook2026findsthat

71%

57%

Overhalfofcorporatedealmakers(51%)expecttheircarve-outactivitytoincreasemoderatelytosignificantlyoverthenext12–24months.

ofglobalcorporatedealmakers

ofPEfirms

Inparallel,morethanhalfofPE

dealmakers(55%)areactively

consideringacquisitionsofcarved-outassetsoverthesameperiod.

areopentooractivelypursuingportfoliorationalizationin2026.

7

Winningthecarve-outrelay

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Carve-outdealvolumeacceleratedto16.3percentfrom2023to2024.Fivestructuralforcesaredrivingthismomentum.

Corporatesarestreamlining

operationstoboostROICand

eliminatethediversification

discount,oftendrivenbyactivistinvestorspushingforpure-playentities.

Non-coreassetsareincreasinglyviewedasataxonmanagementattention,distractingleadership

fromrespondingtocriticalmarketshifts.InC&R,thisisdrivinga

ruthlessportfoliore-evaluation,

divestinglegacyunitstofunda

pivottowardhealth,wellnessand‘better-for-you’growthengines.

Morethan50percentof2024carve-outsweredrivenbyadesiretofocusonthecore.

Risksinthetail

Emergingriskslikecybersecurity,regulatoryandgeopolitical

exposurearedisproportionatelyhighintheportfoliotail.

Compoundedbypersistent

inflationandslowergrowthprofilesinglobaleconomies,thecostof

complexitynowoutweighsthebenefitofeconomiesofscale.

Thistipsthebalancetowardsstrategicsimplification.

CybercrimecostsareprojectedtoreachUSD12trillionin2025,pushingfirmstoisolate

vulnerablebusinessunits.

unlockingassetagility

Thecorporatecorecandiminish

assetvalue.Group-widepoliciesandstandardizedsharedservices,whileefficientforthecenter,oftenimpedespecificassetsfrom

reachingfullpotential.

Carve-outsallowbusinessestoescaperigidcorporatestructuresandadoptafit-for-purpose

operatingmodel.

Thisshiftfrom“centralized

efficiency“to“assetagility“is

criticalforrespondingtorapidlychangingindustrialcyclesandconsumertastes.

Consumerandindustrial

conglomeratesareusing

carve-outstoreleaseassetsfromcorporatebureaucracy.

strongpEappetite

PEfirmscontinuetoadopta

strategiclens,pursuing

opportunitiesincorporatecarve-outsandoperationalturnarounds.

Theyseektounlockvaluein

businesseswheretheycanbringinoperationalexpertiseandscaleefficiencies.

PE-ledbreak-upsinconsumergroupsdrive35percentCAGRinapparelandleisurecarve-

outs.

Tariffsanddecoupling

Geopoliticaltensions,tariffsand

supplychainshocksarepromptingmultinationalstoreduceglobal

exposureandrefocusonregionalstrongholds.

Corporatesareincreasingly

divestingassetslocatedindifferentregionsthantheirHQtomitigate

cross-borderriskandinsulatethecorebusinessfromvolatile

geopoliticalconditions.

Morethan20percentof

strategiccarve-outsinvolvethesaleofcompanieslocatedin

differentcountriesthantheHQoftheseller.

Overview

Appendices

Source:KPMGAnalysis;Dealogic.Datafortheperiod2022to2024,

Forrester

.

8

Winningthecarve-outrelay

Overview

Appendices

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Public-companydivestituressurgedc.8.5%CAGR

(2022-24)and+16.3%in2023-24evenasoverallM&A

stayedflat.Recently,corporatebreak-upsandspinshave

addedfreshmomentumtoportfolioreshaping.Forexample,KraftHeinzissplitting~$25.8billionofnetsaleswhile

Kelloggseparated20%ofitsbusinesses.

AsiaandOceaniahaveseenthemostprominentgrowthincarve-outtransactions,drivenlargelybyconglomerates

divestingnon-coreassetsandmarkets.

Totalcarve-outsbygeography

2022-2024,#oftransactions,CAGR2022-2024(%)

Asignificantportionofcarve-outsinvolvesbuyersfromthesameregionasCarveCo,attributabletodeglobalization

trends,easeofintegration,familiaritywithlocalmarketsandexistingrelationships.From2022to2024,19.3%ofcross-regioncarve-outswerewithintheInformationtechnology

industry,with46.5%ofthesedealsoriginatingfromEurope.

Totalcarve-outsfromCarveCotobuyergeography

2022-2024,#oftransactions

93.5%

84..7%

71.7%

86.5%

CarveCo

Europe

15,422

Asia

13,154

NorthAmerica

8,812

Oceania

1,454

SouthAmerica

1,369Africa565

70.3%

55.9%

Buyer

Europe

14,970

Asia

13,688

NorthAmerica9,430

Oceania

1,249

SouthAmerica1,055

Africa384

2023

2024

12,937

198

457

3,189

2,689

4,921

4,343

4,865

432424

2,934

573520201

166

417

12,788

4,910

5,647

3,890

15,051

2022

Source:KPMGAnalysis;Dealogic.

Notes:(1)Referto

glossary

fordetaileddefinitionofcarve-outs.

Europe

(CAGR7.2%)

Asia

(CAGR12.5%)

NorthAmerica(CAGR4.3%)

Oceania

(CAGR16.3%)

SouthAmerica(CAGR9.7%)

Africa

(CAGR0.8%)

Carve-outs(1)areoutpacingthewiderM&Amarketandnowaccountforalmostoneineverythreedealsworldwide.

Percentageofcarve-outsfromtotaldeals

2022-2024,#oftransactions(%)

48,807

48,204

26.2%

31.2%

68.8%

73.8%

2022

2024

Carve-outs

Otherdeals

Despitetheglobaldealsmarketcomingunderpressure,carve-outsareincreasinglyappealingtobuyerslookingtotapintoundervaluedand/orunderinvestedassetswith

potentialtounlockvalueopportunities.

Thereareanumberofdrivingforcesforsellerstopursue

carve-outs,asweexploreonthefollowingpages.These

trendsreinforcetheneedforcorporatestoassesstheir

strategyinrelationtocarve-outsandpreparetheirplaybookaccordingly.

9

Winningthecarve-outrelay

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Carve-outcomplexitymeanssellerstaketheireyeofftheballwhenitcomestovaluecreation.Webelievevaluecreationshouldbeembeddedfromthestart,andsetouthowtodothis,inthisreport.

Acarve-outentailssignificantcomplexitiesatbothfunctionalandfoundationallevels.

SupportfunctionsCorefunctions1

Design

Marketing

Sales

Product

Development

CustomerService

Engineering

Logistics&Distribution

Operations

Manufacturing

SupplyChainManagement

Research&Development

Treasury Admin

Finance&Accounting

Human

Resources

Risk

Management

InformationTechnology

Legal&

Compliance

Providetheframeworksandinfrastructuretoenable,supportandmonitorthebusiness

andoperationsacrossallfunctions.

Foundations

Measures&

Incentives

Governance&

Policies

People&

Culture

Assets&

Contracts

Reporting

TechInfrastructure&Data

Quality

Unlikesellinganalreadyindependentsubsidiary,incarve-outtransactions,youmustalsounwindsharedsystems,

peopleandcontracts.

Thisbringsaddedcomplexity.Commonentanglements

includesharedtechnologyandco-mingleddata;multi-

role/sharedresources;sharedassets;combinedfinancialsandreporting;andsharedsupportservices.

Therearedifferentapproachestodealingwiththese

separationchallenges.Someplaybooksfavorupfront

separationwhileothersshiftimplementationeffortstothe

sign-to-closeorpost-closephasesandmayrequireTSAsforbusinesscontinuityuntilfullseparation.Weexplorethe

trade-offsoftheseapproachesinthisseries.

Ultimatelythebestcarve-outoutcomescomefrom

identifyingandaddressingcomplexitiesandvalue

opportunitiesearly,regardlessoftheplaybookchosen.

Overview

Appendices

Note:1Thedefinitionofcorevssupportfunctionsmayvaryacrossindustriesanddifferentoperatingmodels.Unlessotherwisespecified,industrialmanufacturingisassumedforallanalysisthroughoutthispaper.

10

Winningthecarve-outrelay

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

TheConsumer&Industrialssectorsaccountedfor40percentofglobalcarve-outsfrom2022–2024,predominantlyfromEuropeanandAsiansellers.

Industrials

8,737

Consumer

7,567

Technology

6,696

Energy

4,820

3,529

3,040

3,037

2,175

1,175

40,776

Financials

Healthcare

Materials

RealEstate

CommunicationServices

#ofcarve-outsbyCarveCogeographyandindustry2022–2024,#oftransactions

3,629

2,767

1,734

291

224

92

3,201

2,334

1,406

287

248

91

2,398

2,245

1,753

151

117

32

1,805

1,259

1,133

172

348

103

1,344

1,145

722

125

109

84

976

884

1,008

91

7

1

64

817

1,174

591

193

147

115

779

1,008

217

96

65

473

338

248

48

47

56

1,36

15,422

13,154

8,812

1,454

5

9

Total

Oceania

Europe

SouthAmerica

Asia

NorthAmerica

Africa

Industry

CAGR

2022-2024

Mainstrategicrationaleofcarve-outs

Industrials

11.3%

RisinginputcostsandlaborshortagesstrainROIC1;EuropeanandAsianconglomeratesarepruningconstruction,engineeringandcapital-goodsunitstofocusonhigh-marginniches

Consumer

11.4%

PE-ledbreak-upsofdiversifiedconsumergroups;appareland

leisurecarve-outsgrowingat35%CAGRasbrandspursue

direct-to-consumergrowth.FMCG4giantsdivestunder-

performingornon-coreSKUs5toconcentrateon‘better-for-you,foodcategoriesoradapttotheK-shapedeconomythatistakingconsumersfromthemainstream(highvolume)brandsdownto

value(lowmargin)brands,oruptopremium(lowvolume)brands

Information

Technology

5.1%

StrategicrefocusonAI/cloud/SaaS2;geopoliticalriskpushinghightechhardwaremakerstoon-shoreandspinoutnon-coreassets

Energy

3.2%

Investorpressuredrivesoil&gasmajorstocarve-outcertainassetstorealizevalueormeetsourcingcommitments

Financials

8.9%

Highercapitalcharges(BaselIV)andefficiencytargetspush

banksandinsurerstodivestpayments,assetmanagementandlegacyservicingarmstofunddigitalandAIinitiatives

Healthcare

10.8%

LargelydrivenbyAmericanbigpharmaandmed-techcompaniesdivestingmaturebrandsandassetproviderstofundhigher-

marginprecisiontherapies,diagnosticsandCDMO3platforms

Materials

10.1%

Tighteningcarbonregulationspromptchemicals,cementandmininggroupstoshedcarbon-intensiveorlow-growthdivision,withChinaaccountingforover20%oftheindustrycarve-outs

RealEstate

11.2%

Higherinterestratesandremote-worktrendstriggeroffice

portfoliorestructuringandsalesofnon-coreREIT6divisions.InChina,debtcrisisandgovernment-ledrestructuringsledto562carve-outs

CommunicationServices

(4.4%)

Legacytelcocopperandprintmediadisposalscontinue,but

overallindustrycarve-outvolumelagsamidconsolidationpauses

Overview

Appendices

Source:KPMGAnalysis;Dealogic.

Notes:1ReturnonInvestedCapital(ROIC);2SoftwareasaService(SaaS);3ContractDevelopmentandManufacturingOrganization(CDMO);4FastMovingConsumerGood(FMCG);5StockKeepingUnit(SKU);6RealEstateInvestmentTrusts(REIT).

11

Winningthecarve-outrelay

Overview

Appendices

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Toomanyteamsfocusonlyontherace,rushingintothefinancialswithoutproperpreparation.Webelievemoretimeshouldbespentupfront,pickingandtrainingthesquad,definingtheraceplanandgettingfit,beforetheraceevenbegins.

4

separationinpractice

Separationplanning

Separationexecution

3

Buldlingthevaluecase

Valuecreationadjustments

Implementtheplan,de-riskingDay1,

Mapthecriticalpathandgeneratevaluecreationand

separationplanstomanagerisksand

realizevalueforbothCarveCoand

RemainCo

protectingbusinesscontinuitythroughthecarve-out

Separationadjustments

transition,and

Performavalue

creationdiagnosticanddevelopan

attractivebusiness

plantomaximizethevalueofCarveCo

realizingmaximumvaluefromthe

carve-outforbothCarveCoand

Definethecost

Baselinefinancials

2

RemainCo

carve-outstrategy

right-sizedCarveCoandtheone-offcoststoachievethe

separation

adjustmentsfora

Establishasingle

sourceoftruthand

baselineforCarveCo

Carve-outstructure

Determinewhich

carve-outapproach

maximizesexitvalue(a)basedonstrategic

understanding(e.g.

business-in-a-boxvs.

syntheticstandalone)

1

portfollostrategy

Carve-outapproach

Alignbetween

CarveCoandSeller

Managementonthedrivers,purpose,

perimeterandlikely

structureofthecarve-out(e.g.spin-offvs.

Buildingtherightinhousecapability

Trainingin-house

musclesaheadofacarve-outtohelp

deliversuperioroutcomesin-deal

Decidingwhatandwhentodivest

saletoprivateequity)

Readmore

Readmore

Readmore

Readmore

Note:(a)ExitValueshouldfactorexitcosts(e.g.doublerunningcosts,strandedcostsanddis-synergies),includingongoingimpactstoRemainCo.Pleaserefertothechapter‘BuildingtheValueCase’formoreinformation.

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Preview:

12

Winningthecarve-outrelay

©2026CopyrightownedbyoneormoreoftheKPMGInternationalentities.KPMGInternationalentitiesprovidenoservicestoclients.Allrightsreserved.

13

Winningthecarve-outrelay

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Preparationoftendecidesoutcomes.Buildingsystematicportfolioreviewsanddevelopingthein-housemusclearoundvaluecreationandcarve-outstrategyisthekeyfoundationforasuccessfulcarveout.

Strategiccompassvs.Operationalintensity

Corporatesandprivateequityownersoperatewithdifferent

superpowers.Corporatesholdtheadvantageofalong-term

strategiccompass,asking“doesthisassetfitwhowewanttobein10years?”basedonevolvingmarkettrends.PEfirms

operatewithoperationalintensity,asking“isthisassetrunningatmaximumefficiencytoday?”

Thetrapformanycorporatesisusing“long-termvision”asanexcusetotolerateshort-termunderperformance.Leading

playerscombinethesedisciplines:theyusemarkettrendstosteertheportfoliobutapplyaPE-stylevaluecreationlenstoensureeverybusinessunitearnsitsplaceinthegroup.

Liftingthemirror:Theroleofthecenter

Toexecutethis,corporatesmustregularly‘liftthemirror’andassesstheroleofthecenter.Thecentralquestionisnotjust“isthisassetprofitable?”but“arewethebestowner?”

Doesthecorporatecenteracceleratetheassetthrough

sharedcapabilitiesandcapital,ordoesitstifleagilitythroughbureaucracy?Iftheassetgeneratesmorevaluestandalonethanitdoesinsidethegroup,achangeisrequired.

Internalseparation:Carve-outdoesnotalwaysmean“sell”

Thesolutiontoanunderperformingassetisn’talways

divestment.Weincreasinglyseecorporatesexecuting“internalseparations”(or“carve-outswithin”),physicallycarvingoutanassetoperationallyandfinanciallybut

retainingownership.

Thismaterializedphysicalcarve-outremovesthefogof

groupallocations,exposingtheasset’strueperformance.Itallowsthegrouptosolvespecificcostortaxinefficiencies(acommondriverininternationalassetsofEuropeanHQ

groups)andforcestheassettostandonitsownfeet,

drivingperformanceupliftwhetheratransactioneventuallyhappensornot.

Illustrativeframeworkforportfolioreview

ROIC-WACC

Positive

Istheasset

generating

value?

Negative

Key

Feasibilityofsale:

High

MediumLow

Internalseparation

Keep

0

Prioritydivest

Fix

0

>1

AsIsValue

1StandaloneValue

Couldanalternativeowner

extractmore?

BubblesizeindicatesBUshareofinvestedcapital

Winningthecarve-outrelay:Teamselectionandpreparation

KPMG

March2026

MaketheDifference

..

14

Winningthecarve-outrelay

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Thejobofmanagementistooptimallydevelopanddeployresources.Spinningoffbusinessesthatarevaluedmorehighlyontheirowncanunlocksignificantupsidefortheseller.Torealizethese

‘additionthroughsubtractionopportunities’,astructuredapproachanddevelopingthetrainingmusclesaheadofracedayisessential.

Portfoliostrategyisoneofmanagement’sprime

responsibilities.Yetfewexecutivesareversedor

trainedinmethodstosystematicallyanalyzeand

determinewhichportfoliobusinessestoallocatecapitaltoandwhichtosell.

Further,corporateincentiveprogramsfrequentlyfocuson“growth”metricsovereconomicprofit,encouragingmanagerstoaccumulateassetsratherthanoptimize

capital.Theempiricalrecordshowsthat

sellersin

publiccompanyM&Acreatemorevaluethanbuyers

meaningactiveportfoliomanagers—thosewhodivestaseffectivelyastheyacquire—arelikelytooutperformthosewhoonlybuy.

ii

Corporatecapitalallocation

Readmore

Portfolioanalysis

Readmore

Valuecreationasthekeysourceofalpha

Readmore

Embeddingavaluecreationmindsetintoportfolio

management

Readmore

15

Winningthecarve-outrelay

16

Winningthecarve-outrelay

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Divestmentisastrategicfundingsource.Capitalallocationmustbalanceinvestinginthecorewithpruningthetailtomaximizetotalshareholderreturn.

Balancingsourcesanduses

Corporatefocusoftenleansheavilyontheusesofcapital

(CapExandM&A).However,leadingConsumer&Industrialgroupspayequalattentiontothesources.Divestituresareacriticallevertoreleasetrappedequity,providingthefueltoinvestinhigh-growthcoresegmentswithoutover-leveragingthebalancesheet.

Thearbitrageopportunity

Sellingnon-coreassetsisoftenaformofvaluation

arbitrage.Bydivestingassetsthatcommandahigher

multipleoutsidethegroup—orsimplyremovingthe

“conglomeratediscount”drag—corporatescanrecyclecapitalintohigher-ROICcoreactivities.

Theroleofthecenterinallocation

Effectiveallocationrequiresanhonestassessment:Isthe

CorporateCenterthebestsourceofcapitalforthisasset?Ifabusinessunitcompetesforresourcesagainstahigh-

growthcore,itmaybestarvedoftheinvestmentitneeds.

Divestmentcanbethemostresponsibledecisionfortheasset’sownfuturegrowth.

Sourcesandusesoffinancialcapital

sources(+)uses(-)

Dividendsandsharebuybacks

Debtrepayment

Capex

Workingcapital

Research&Development

Costoptimization

Stockissuance

Debtissuance

Operationalcashflow

Divestures

External

Internal

USfinancialcapitalsourcesanduses,2024USDbn

2,613

Operatingcashflow

1,053971

661659429374

334134

Capitalexpenditure

Sharebuybacks

Research&Development

Dividends

Networkingcapital

Netdebtissuance

Mergers&Acquisitions

Stockissuance

Divestures

71

Sources:KPMGAnalysis.USCapitalDeploymentisfortheS&P500,sourcedfromS&PCapitalIQ.SourcedfromcashflowstatementsexceptorResearch&Development.

17

Winningthecarve-outrelay

Overview

Portfoliostrategy

Carve-outstrategy

Buildingthevaluecase

Separationinpractice

Appendices

Buildingadata-drivenviewoftheportfoliothatgoesbeyondlaggingfinancialmetrics.Successfulreviewsintegratemarkettrendsandconsumerbehaviorstoanticipatewheretheportfolioneedstobetomorrow.

From“currentstate”to“futureexposure”

Traditionalportfolioanalysisfocusesonpastperformance(revenue,ROIC).Whileessential,thesearelaggingindicators.Tofuture-proofthebusiness,analysismustidentifywheretheportfolioisexposedto