When a business unit is sold, separating the underlying technology stack is one of the most complex – and often underestimated – parts of the transition. Stelth was brought in to manage the full technology carve-out for a recently acquired subsidiary, guiding it from integration within a parent company to full operational independence.

The project required strategic oversight, careful timing, and deep technical coordination across cloud platforms, licensing, security, and identity.

Background: Carving Out from the Parent

The subsidiary had spent years operating as a division within a larger organization. As part of a broader portfolio reshuffle, the unit was sold to a private equity-backed buyer, triggering a full separation of infrastructure, systems, and access.

The challenge? Nearly every part of the technology stack was shared – Microsoft 365, file systems, security platforms, domains, licensing contracts, and vendor tools. There was no standalone technology footprint.

That’s where Stelth came in.

Our Mandate: Separation Without Disruption

We were engaged to:

  • Assess the existing technology dependencies between the parent and subsidiary

  • Design a complete separation roadmap that aligned with operational deadlines

  • Execute the technical carve-out while maintaining business continuity

We approached this as both a strategic advisory and hands-on execution project – serving as the fractional lead and engineering team for the divested entity while coordinating with the parent’s internal teams and legal counsel.

What We Delivered

Microsoft 365 Tenant Separation

The subsidiary was operating under the parent’s Microsoft 365 tenant, with no independent licensing or administrative controls.

  • We stood up a brand-new Microsoft 365 tenant

  • Migrated all mailboxes, calendars, OneDrive files, and SharePoint libraries

  • Set up domain verification, SPF/DKIM, and security baselines from scratch

  • Worked directly with Microsoft to reassign and transfer licenses where possible

The transition was timed over a single weekend to avoid operational downtime. Users logged in Monday morning with no data loss and full continuity.

Domain and Identity Split

The subsidiary’s user accounts and security groups were nested within the parent company’s Active Directory structure.

  • We created a standalone Azure AD environment

  • Rebuilt user accounts and group policies

  • Established a secure password reset and MFA re-enrollment process

  • Coordinated device handoffs and Intune re-enrollment

Throughout, we used Microsoft Cloud tools to minimize friction, including Azure AD Connect staging and scoped synchronization.

File System Rebuild

The parent and subsidiary shared mapped drives and SharePoint spaces. We:

  • Audited usage to determine file ownership and access dependencies

  • Migrated all relevant content to the new tenant

  • Set up new SharePoint site structures and OneDrive environments

  • Provided access checklists and documentation for staff onboarding

Toolset and Vendor Unbundling

The divested business relied on:

  • Shared AV and endpoint protection

  • A global helpdesk platform

  • Centralized firewall and VPN licensing

  • Parent-managed security and compliance tools

Stelth IT:

  • Procured and deployed independent security tools, firewalls, and licensing

  • Registered and configured a standalone helpdesk and asset inventory platform

  • Aligned all policies with industry best practices and the buyer’s compliance requirements

People, Process, and Support Transition

A separation isn’t just technical – it’s organizational.

We:

  • Created new IT support workflows and ticket routing structures

  • Delivered documentation and SOPs for all newly deployed systems

  • Held live training sessions with key stakeholders in each department

  • Set up dashboards and reporting tools to give leadership visibility into post-transition performance

The Result: A Clean Break, a Stronger Start

Within 90 days, the subsidiary:

  • Had full ownership of its technology environment

  • Was operating independently in Microsoft 365, Azure AD, and SharePoint

  • Had its own helpdesk, licensing, security stack, and identity controls

  • Was no longer reliant on the parent company for any infrastructure

And perhaps most importantly – it was positioned to scale under new ownership, without dragging the complexity of its former environment behind.

This Is What We Mean by Quiet Precision

At Stelth, we specialize in the behind-the-scenes work that powers real transformation. Technology carve-outs demand discretion, speed, and control – exactly what we bring to every M&A engagement.

Whether you’re acquiring, divesting, or restructuring, Stelth ensures your technology transition is quietly powerful and future-ready.