Framework
Controlled Calving Playbook
TL;DR
A comprehensive execution framework for separating a business unit through spinoff, divestiture, or IPO.
A comprehensive execution framework for separating a business unit through spinoff, divestiture, or IPO. Covers pre-announcement planning, announcement-to-close execution, and post-separation stabilization.
When to Use Controlled Calving Playbook
After the Stress Accumulation Diagnostic indicates separation is beneficial (score 0-59 with supporting analysis). Use when you have 12-24 months runway before forced separation would occur.
How to Apply
1
Phase 1: Pre-Announcement (Months -12 to 0)
Strategic planning and operational separation before public announcement.
Outputs
- Investment bank hired, financials modeled
- Structure decided (spinoff/divestiture/IPO)
- Leadership identified for independent unit
- Shared services disentangled
- Separate legal entity created
- Board approval obtained
2
Phase 2: Announcement to Close (Months 0 to +12)
Public communication, capability building, and execution of separation.
Outputs
- Public announcement with stakeholder communication
- Independent C-suite hired (CFO, GC, CHRO)
- Independent systems built/acquired
- Separation executed (shares distributed, sale closed, or IPO completed)
- Transition services agreement begins
3
Phase 3: Post-Separation (Months +12 to +36)
Stabilization and value realization after independence.
Outputs
- Full independence from parent (TSA exited)
- Distinct culture and strategy established
- Combined valuation exceeds pre-separation value by 20-30%+