Non-Core Asset Sales and Carve-outs

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The economic uncertainties of recent years are taking their toll. Rising interest rates, volatile commodity prices and geopolitical tensions are putting companies around the world to the test. In particular, large corporations are under pressure to critically examine their portfolios and find new ways to secure liquidity.

One approach that is proving particularly effective in the current situation is non-core asset sales and carve-outs. With these instruments, companies can divest themselves of peripheral activities that no longer fit their strategic core and, at the same time, free up urgently needed funds for their transformation.

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What are Non-Core Asset Sales and Carve-Outs?

Non-core asset sales refer to the targeted sale of business units, investments or assets that do not belong to the core business of a company. The aim is to free up tied-up capital and sharpen the strategic focus.

Carve-outs go one step further: Here, a part of the company – such as a subsidiary or business unit – is legally separated with the aim of later selling it, making it independent or developing it in a targeted manner. These are complex processes that involve far-reaching organizational and operational changes.

Non-Core Assets in Focus: when Focus Becomes a Survival Strategy

In good times, many companies tend to expand their portfolio. Investments, additional business areas and new markets are intended to secure growth. In times of crisis, this diversification often turns into the opposite: complexity becomes a burden, capital is tied up, and attention is spread over too many construction sites.

Right now, many business leaders are realizing that not every business unit is systemically important for the future. On the contrary, unprofitable or slow-growing divisions can burden the core business and drain urgently needed resources.

Non-core asset sales offer a pragmatic solution. Business areas that no longer fit the long-term strategy are identified and sold. In this way, companies can specifically create liquidity and make their organization leaner and more focused. Jobs can also be cut. An analysis by PwC shows that over 70% of the companies surveyed are planning portfolio adjustments in the next 12 months – a clear signal for the trend towards focusing on core competencies. [1]

Medium-sized Businesses are also under Pressure

Not only corporations, but also medium-sized companies, especially those with investment structures or subsidiaries, are increasingly faced with the task of refocusing. Especially in succession situations, during transformations or under financial pressure, non-core asset sales and carve-outs can be strategic tools to realize values and secure continued existence.

As a corporate finance consultancy, starkpartners regularly supports divestment processes in medium-sized businesses – with a clear focus on a structured approach, investor access and value retention.

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Carve-outs: Structured Spin-Offs as a Strategic Tool

A carve-out is therefore not just a sale, but requires an exact separation of processes, IT systems and employees, which means a complex intervention in the company structure. The goal is to have an independent unit. Roland Berger predicts that carve-outs will become increasingly relevant in view of market volatility – especially in capital-intensive industries [2].
. Examples include Siemens (Energy, Healthineers), Daimler (Truck) or General Electric – their large-scale carve-outs not only ensured efficiency, but also strong value generation.

Market Dynamics: the Renaissance of Divestment

Current data confirms the increasing importance of non-core transactions. According to the Global Private Equity Report 2025 by Bain & Company, the share of carve-outs in the private equity sector has risen significantly in recent years. Carve-out transactions, which have been regarded as reliable sources of returns in the past, are once again gaining in importance – especially in a market environment in which classic takeover candidates are becoming increasingly rare.

The Bain report shows that private equity investors are increasingly focusing on spun-off parts of companies, as these often offer clear growth levers and operational improvement potential [3]. German companies, in particular industrial groups and energy suppliers, are also using carve-outs to become more agile and free up capital for the digital and sustainable transformation.

Recognize Opportunities and Hedge Risks

The advantages are obvious:

- Create liquidity without debt
- Focus on promising business areas
- Increase in value through clarity and agility

However, divestitures can also involve risks. Too-rapid sales can lead to a loss of value. Carve-outs require experience, coordination and know-how, especially when it comes to separating operational units and dealing with employees. Transition Service Agreements (TSAs), change management and clear communication are crucial success factors.

Carve-outs as Part of Corporate Succession

A targeted carve-out can also help to realign the company as part of the company succession, for example if parts are not transferred but sold. This creates new strategic options for entrepreneurial families and investors alike. starkpartners has extensive experience in succession planning, restructuring and transaction support – and knows the emotional and economic pitfalls of such transitions.

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StarkPartners – your Specialist for Transformation, Succession and Transactions

As a boutique for M&A, distressed M&A and succession processes in the SME sector, starkpartners supports companies with:

- the targeted preparation of sales processes
- the investor approach
- the operational separation within the framework of carve-outs
- and support up to the handover or transaction

We are at your side as a discreet, experienced and proactive partner – with a clear goal: creating value and securing the future for your company.

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Our specialists

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Contact the experts at starkpartners now without obligation.

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Sources:
[1] PWC
[2] Roland Berger
[3] Bain & Company: Global Private Equity Report 2025

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