What Clean Day 1 Delivery Actually Looks Like

1. The Pitfalls of Unstructured Speed

Carve-outs, especially those involving over 120 Transition Service Agreement (TSA) exits, are fraught with regulatory, operational, and reputational risks. In this case, the urgency to meet firm deadlines amidst complex operations and stretched internal teams highlighted a critical issue: speed without structure breeds chaos.

2. The Role of Ownership in Execution

The common derailers in such scenarios aren't due to a lack of effort but stem from missing elements like sequencing, clarity, and accountability. Without these, sponsors lose visibility, workstreams stall, and escalations become frequent, leading to TSA extensions that quietly erode deal value.

3. Implementing Structured Governance

Our approach prioritized governance over speed. By imposing a structured cadence across all functional workstreams, mapping ownership and interdependencies before Day One, and providing sponsors with real-time visibility without over-involving them in delivery, we established a framework that facilitated effective execution.

4. Achieving Results Through Structured Execution

This structured approach led to every TSA exit being delivered on time, with many completed ahead of schedule. The entire separation concluded 38 days early, resulting in $850K in avoided fees. There were no functional gaps, business disruptions, or end-of-term escalations.

“When ownership is clear, pace becomes a byproduct — not a pressure point.”

5. Key Takeaways for Sponsors

Execution should be viewed not just as a risk to manage but as a lever to pull. With embedded leads, structured delivery, and real-time alignment, sponsors can stay ahead of risks and focus on value creation. In the realm of private equity, execution is either the drag or the edge.