Now evaluating a carve-out from a $150+ M SaaS company ($20+ M ARR); that is, spin-off a non-core product line and small team (in this case, it's a ten-year-old SaaS product with $2 M ARR with thousands of paying customers) into a new company. Curious what special protections and agreements are important to put into place? Where do these deals typically fail? Of course, the risk can be a lot higher, but the price can be a lot lower, than buying a company outright. Thanks for any thoughts. Best, Andy
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Also in evaluating the carve out financials, you can pretty much assume that they have understated shared services in the SGA line.