Carving out a new company, aka “Just Add Water”

Earlier this month, our Google Alerts picked up a press release praising our role in a recent carve-out project. It was a nice surprise for us, and has generated some inquiries about our role. In this post, I’ll quickly scope out the project, and our role, for you.

Edgewater Technology was approached by one of our existing clients to assist with defining technology strategy for a “carve-out” that they were bidding on. Both parties sought a way to minimize or eliminate the need for a transition services agreement (TSA) and close the deal as quickly as possible. Our client, the buyer, intended to integrate the carve-out into one of their existing portfolio companies. This portfolio company was running well with a lean organizational model and homegrown ERP platform, but it was clear that it could not absorb the new acquisition with its existing enterprise technology architecture. Senior consultants from Edgewater Technology’s M&A and Infrastructure Services practices, with our colleagues from Edgewater Fullscope, our sister company with expertise in implementing Microsoft Dynamics AX, quickly put together a strategy based on:

  • Migration of the acquisition onto Microsoft Dynamics AX
  • A new corporate network  to link the parent company with 1 US and two international sites, providing for remote access for employees and contractors as well
  • Hosted MS Exchange based email
  • Hosted MS Sharepoint
  • Virtualized application deployment in Edgewater’s Data Center

In addition to implementing the technologies described above, Edgewater rehosted a smaller ERP system in use at one of the international sites, to avoid having to take on two ERP application migrations at once. This business unit will eventually migrate onto AX after the initial  stabilization of the US business is completed.

Because of Edgewater’s 10+ years of experience with M&A integration, program management, business process definition and organizational change management, our team provided these wraparound services as well, spearheading a Program Management Office that embraced all US and International acquisition sites and members of both the Buyer’s and Seller’s transition teams.

In an intense 120 day transition, Edgewater successfully completed the implementation of all the technology described above, as well as definition of key business processes for a global organization that relies on international suppliers and domestic third party logistics providers.  Some of the challenges we addressed along the way included: 

  • Bringing up a short-term web-based EDI solution to meet the aggressive timeline, while beginning to rollout integrated EDI processing in time for Day 1
  • Reconciling numerous issues data migration issues
  • Replanning exercises to address unforeseen obstacles without jeopardizing the timeline
  • Scaling down our implementation methodology to minimize the resource requirements on a lean core team that was still running the platform company’s business with no backfill
  • Training a workforce that included a significant number of new hires

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