Small Carve Out Acquisition

searcher profile

February 07, 2025

by a searcher in New York, NY, USA

We're looking at a smallish (<$10M enterprise value) deal that is a carve out of a business in the healthcare services space.

If anyone has experience working on a carveout - would love to connect! We're worried about not having full line of site into the true opex of the EBITDA figure we're bidding on, which gives us pause on the transaction in general.

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commentor profile
Reply by a lender
in Stuart, FL, USA
For starters, you will need all of the P&L's and Balance Sheets from all of the "other" units that are not being bought so you can cross reference expenses etc. You also need to see if any company was making "due to"- "due from" transfers between units and if so, why. Carve outs can be tricky as they are easier to hide the truth of what is really going on. Biggest question is: Why is the seller selling the units he is selling and keeping the ones he is keeping?
commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Happy to chat. But would say carve outs can be very difficult to pull off. Your concern is top of mind. QOE is a must have. I specialize in SBA so if this is more of a conventional play then I won’t be a good fit. redacted
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