MC

Knowledge Base

Methodology, glossary, and playbooks for separation economics diligence — written for the deal team, not just the model.

Knowledge Base/Playbooks & Checklists
Playbooks & Checklists
2 min read

First 30 Days: Stranded Cost Assessment

A practical sequence for standing up a credible stranded-cost view fast, before deal fatigue sets in.

  1. Pull the shared-services org chart and flag every role with less than 100% allocation to the divested unit
  2. Request the top 15 vendor contracts by spend and review assignment / change-of-control / minimum-commitment clauses
  3. Get a preliminary ERP/IT separation scope from the CIO's office, even if a vendor SOW isn't final
  4. Build the cost driver table with low/base/high ranges and an explicit confidence level per category — resist the urge to collapse ranges into a single number this early
  5. Log every open item as an explicit data gap rather than a silent assumption, with an owner assigned

Tip: Speed matters more than precision in the first 30 days. A credible range with visible data gaps beats a false-precision point estimate that has to be walked back later — and it's much easier to defend to a buyer's diligence team.