Definitions for "Carve-Out" Add To Word List
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A situation in which a parent company sells a minority share of a child company,...
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Also called a partial spinoff, an IPO or rights offering orchestrated by a company for a minority stake in a subsidiary.
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a special kind of spin-off in which a parent company, instead of handing out shares in a subsidiary directly to current stockholders, sells a partial interest in an IPO
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a strategic avenue a parent firm may take when one of its subsidiaries is growing faster and carrying higher valuations than other businesses owned by the parent
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a way to obtain different terms and conditions for a particular peril or to obtain coverage that the company might not get otherwise
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A specific type of spin-off in which the corporate parent consolidates a particular line of business and then sells that newly created subsidiary to investors. In essence, the company is "carving out" a piece of its business with a specific business focus and selling it to the public to highlight the value of niche business operations within the larger company. Usually done in the form of a true spin-off with an independent board and separate financial statements, but heavy cross ownership by parent. Sometimes done in the form of a tracking stock structure.
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