This article explains SAP carve out » in a clear and practical way, outlining what they are and why organisations use them during mergers, divestitures or structural changes. It walks through the full process, including scope definition, system analysis, data separation, validation and post-transition activities. The article also addresses common challenges such as maintaining data integrity, meeting compliance requirements and avoiding operational disruption. In addition, it highlights the strategic benefits of a well-executed SAP carve-out, including reduced system complexity, greater flexibility and improved cost control. Readers gain valuable insights into how careful planning, strong governance and expert execution help ensure a smooth transition and long-term stability within SAP landscapes.