Carve-out

Filed Under »
Dictionary Says

Definition of 'Carve-out'

1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering.

2. Where an established brick-and-mortar company hooks up with venture investors and a new management team to launch an Internet spinoff.
Investopedia Says

Investopedia explains 'Carve-out'

In most cases the parent company will spinoff the remaining interests to existing shareholders at a later date when the stock price is much higher.

Also known as a "carveout" or an "equity carve out."

Related Definitions

  •

    Spinoff

    The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.
    Read More »

  • Split-Off

    A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company.
    Read More »

  • Split-Up

    A corporate action in which a single company splits into two or more separately run companies. Shares of the original company are exchanged for shares in the new companies, with the ...
    Read More »

    • Scrip

      1. A written document that acknowledges a debt. 2. A temporary document representing a fraction of a share resulting from a split or spin-off. Scrips may be applied to the purchase of ...
      Read More »

    • Discontinued Operations

      A segment of a company's business that has been sold, disposed of or abandoned. Discontinued operations can range from a certain product line to an entire line of business. When ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions