This article explains the concept of an SAP carve-out and why it is a critical step during mergers, acquisitions, or corporate restructuring. It outlines the complete process, from defining system boundaries and identifying relevant data to executing separation activities and validating results. The article also highlights typical challenges such as maintaining data consistency, ensuring compliance, and avoiding business disruption. In addition, it presents the key benefits of a well-managed SAP carve-out, including reduced IT complexity, improved operational flexibility, and cost optimisation. Readers gain practical insight into how structured planning and execution help organisations achieve a smooth transition and maintain long-term control over their SAP landscapes.