How IT carve-out project complexity influences divestor performance in M&As

IT carve-out projects are complex and cost-intensive components of M&A transactions. Existing research sheds little light on the determinants project complexity and/or its effects divestor performance. Instead, has focused post-acquisition integration acquirer This paper presents first divestor-centric model transactions from to when a Business Unit in Multi-Business Organization (MBO) is carved out integrated into another MBO. The explains how business alignment pre-conditions contribute increased complexity. Such increases time physical separation creates stranded assets, which decrease post-divestment business, current recommended strategy adopting transitional service agreements (TSAs) handle compared with two new proactive strategies derived model. TSA-based restrict both decommissioning assets reconfiguring support strategy. address without incurring negative TSAs.