Although carve-out transactions – in which a corporation sells a subsidiary or business line – have always been challenging, new economic realities of the coronavirus pandemic are elevating execution risks of the deals and increasing sellers’ desire to complete the transactions. That may result in increased numbers of carve-out acquisitions in an environment where it is simultaneously more difficult to execute an in-person carve-out transition plan. In a guest article, ContinuServe managing director Pradeep Khurana details several steps PE sponsors can take to prepare for certain challenges introduced by carve-out transactions and to increase the likelihood that those transactions are successful. Among other things, the article recommends that PE sponsors take special care when appointing transition task forces to manage the process and that they ensure the carved-out business has adequate back-office functionality from day one. For more on transaction types and approaches gaining greater prominence during the pandemic, see “Considerations When Using Earn‑Outs to Consummate Secondary Transactions During a Downturn” (Jun. 16, 2020); and “Types of Rescue Capital PE Sponsors Can Pursue to Help Their Portfolio Companies Survive the Pandemic (Part One of Two)” (Jun. 9, 2020).