Software Division Carve-Out
A Private-Equity SaaS Platform Stand-Up
- Industry
- Private Equity / Software
- Service
- Carve-Out Technology Stand-Up|NetSuite ERP & HubSpot CRM Implementation|Cross-Functional Augmentation|Change Management & Post-Rollout Stabilization
Overview
A mid-market PE firm acquired a software division of a global information provider to carve out a new entity that would consolidate a large portfolio of on-premises legacy applications into a SaaS platform. The new entity was formed as a platform company focused on organic growth from existing products and services and incrementally through future acquisitions. As a result of the acquisition, the newly formed company consisted of almost 1,000 people located in different countries across the globe.
Carve-Out Constraints
Timing — 6-Month TSA
The seller (parent company) retained its core business infrastructure (ERP, CRM, PSA, Web, HR, eCommerce, data warehouse, analytics, intranet) and agreed to provide six months of support. The separation agreement limited that support largely to network and infrastructure — not the deep process expertise needed to implement new business systems.
Scope — Whole Ecosystem at Once
Dependency on internal systems across all core business and functional areas meant the entire ecosystem of applications had to be implemented inside the six-month TSA window — together, not in tidy phases.
Resources — Talent Walking Out
A significant number of key functional and technical resources had left or were leaving as part of the strategic "Synergy" process. Resources who stayed didn’t have the expertise to take on new system implementations.
How We Solved It
The new company brought in a VP of Technology with experience implementing core business applications and digital transformation. The executive engaged Sphere for cross-functional expertise across digital marketing and CRM, accounting and finance, and systems integration — to expedite a comprehensive implementation against an inflexible TSA deadline.
1. Discovery → Definition
A combination of due-diligence documentation and a 2-week functional discovery sprint produced high-level BRDs that specified the future systems’ technical and functional requirements. Augmenting the team with Sphere at this stage saves money and time later in the engagement.
2. Best-of-Breed Cloud Selection
NetSuite ERP and HubSpot CRM were selected to replace the parent company’s loosely integrated SAP ECC / MS Dynamics and Saleslogix CRM. Both systems satisfied the implementation timeline, cost, hosting, international data-storage regulations, multi-subsidiary and multi-currency, integration capability, user access (web-based, mobility, MFA), and over 80% of out-of-the-box functional requirements.
3. Change Management Built In
During discovery and throughout implementation, key resources within the new organization were identified to participate in system configuration. That expedited adoption and provided real-time feedback to QA — change management running in parallel with the build.
4. Post-Rollout Stabilization
Some integration workflows and automations were identified during discovery as risks against the TSA deadlines and were intentionally scheduled for delivery after Go-Live. Identifying these complex but non-critical processes ahead of time — and committing to a stabilization phase post-rollout — kept the project on schedule without leaving loose ends.
Key Outcomes
NetSuite + HubSpot in 6 Months
NetSuite ERP and HubSpot CRM were stood up inside the TSA window, replacing a complex web of legacy parent-company systems.
80%+ Out-of-the-Box Fit
Both selected platforms met over 80% of functional requirements out of the box — minimizing custom work that would have blown the timeline.
Real-Time QA via Embedded Users
Key user resources participated in system configuration, providing real-time QA feedback and accelerating adoption.
Risk-Aware Delivery
Complex non-critical integrations were intentionally deferred to a post-rollout stabilization phase — protecting the TSA deadline.
The Results
Divestiture/carve-out driven system implementation projects inevitably surface challenges requiring unique solutions. Aggressive timeframes, insufficient internal resources, sparse documentation, conflicting priorities, and complex scope are typical for M&A technology projects. Time-to-implement is almost inherent because of impending separation deadlines.
Dedicated, augmented resources are crucial — and the team must possess deep technical and functional expertise to quickly determine in-scope/out-of-scope requirements and focus on the vital aspects of the implementation. These qualities aren’t out of reach for internal teams, but they don’t typically transition seamlessly into this dynamic problem space the way teams with Sphere’s wealth of experience integrating complex systems projects across a just-created new corporate entity do.
Change management, system adoption, system training, and post-rollout support should always be included in implementation planning for an M&A transaction — and were here.
