Companies must invent new products, new business models, move their operations and adapt to new imperatives in energy and raw materials.  That creates opportunities for successful carve-outs in the coming years.

1. Carve-outs allow for an “ambidextrous” management: the mature business management can focus on efficiency (“exploitation”), while the new business management can focus on “exploration” and growth; 

2. Commercial partners avoid complex conglomerates in transformation. Specific, carved-out businesses will more easily find financial and commercial partners that fit their needs.

3. Carved-out entities are better prepared for crisis. Once they are in a stand-alone mode, one can easily divest them should need arise (eg. geographical challenges like Russia, Hong Kong, …, or regulatory challenges such as industries affected by the nitrogen regulations – cf. sale of a division of Borealis). 

This is a summar of an article by Christoph Seibt in Manager Magazin of February 2023.