In recent years, there has been an increase in “carveout” transactions, which are mergers and acquisitions transactions where a business unit or other business unit is sold from a larger organization. Whether it`s because of the pressure on companies to focus on core competencies and divest themselves of non-core businesses, or simply because there are fewer autonomous opportunities for private equity and strategic acquirers, these deals have accounted for an increasing percentage of M&A activity. The COVID-19 crisis is expected to accelerate this trend. While the potential benefits of an opt-out transaction can be significant for the parties involved, such transactions can also be quite complicated and present a number of unique challenges, even for the most demanding buyer or seller. Here are some important tips to keep in mind for buyers and sellers when considering an exception. Seward & Kissel`s Commercial Transactions Group regularly manages the structuring and trading of carveout transactions in various sectors. If you are considering such a transaction, please contact your seward & Kissel attorney from the beginning to guide you through the process to follow. Seward & Kissel has set up a COVID-19 resource center on our website to access all relevant alerts that we distribute. .