Carve-out plan for a retail company whose IT systems were highly dependent on its parent company

Industry: Retail

Revenues (in €m): 443

Context

  • Rallye holding decided to divest Courir, a branch of Go Sport Group. This retail brand is specialized in the distribution of sports footwear and includes more than 250 stores in France and 34 stores abroad
  • IT dependencies are numerous and significant between Go Sport and Courir. The seller asked Eight Advisory to support them by carrying out an IT due diligence focused on the Carve-out issues

Our mission

  • Analyse of Courir IT strategy, organisation, applications, infrastructure, security, projects and costs
  • Identify the IT dependencies (shared assets, licences, projects, etc.) with Go Sport Group in order to mitigate any risk related to the transition towards a standalone model, to define the carve-out scope and estimate the associated costs and efforts
  • Estimate the IT one-off costs required to make Courir autonomous, and the recurring IT costs of the target standalone company
  • Define a roadmap to achieve Day One objectives, including the scoping, the writing and the costing of TSAs

Results

  • Due Diligence report focused on IT carve-out issues to be factored in and addressed within the divestment process
  • TSA documentation including scope, duration, costs and terms, enabling to secure an agreement with the buyer
  • IT carve-out roadmap anticipating all the actions to be executed to achieve Day One Readiness

Key succes factors

  • Ability to address all the issues related to IT systems, combined with functional expertise
  • Close collaboration with Eight Advisory Transaction Services team relying on a one-stop-shop approach for our client, ensuring consistency all along the divestment process
  • Collaborative approach with all stakeholders (Seller, transferred entity and opposite parties)