carve-out


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Equity Carve Out

The act or process of a company making an IPO on one of its subsidies without fully spinning off. During an equity carve-out, the parent company becomes majority shareholder and only offers a minority share to the market. This gives the subsidiary a degree of autonomy (such as its own board of directors) while still retaining access to resources at the parent company. Most of the time, an equity carve-out ultimately results in the parent company fully spinning off the subsidy. It is also called a partial spin off.

carve-out

carve-out

An area of personal liability in an otherwise nonrecourse loan.A lender may be willing to accept property as sufficient collateral for a loan, without requiring personal liability on the part of the corporate or individual borrower in case there is a default and the collateral is insufficient to pay the debt.The exceptions,or carve-outs,are for things outside the ability of the lender to analyze during underwriting,such as borrower fraud or environmental claims.

References in periodicals archive ?
The tobacco carve-out is especially counterproductive because its economic importance is so small.
Thompson's (2010) conclusion that initial return of carve-out IPOs can be predicted based on the public information available before the offer day corroborates the evidence.
In Section V, we outline econometric issues including formulating a set of panel data econometric models to assess empirically the effects of carve-out implementation on new technology utilization.
Here, A and B sold their right to all remaining lottery payments; thus, under the Third Circuit's analysis, the sale is a vertical carve-out, which could indicate either capital-gain or ordinary-income treatment.
If carve-outs have one distinguishing characteristic, it is their emphasis on alternate dispute resolution and the central role of the carve-out ombudsman in reducing attorney involvement and friction costs.
An equity carve-out is the sale by a public company of a portion of one of its subsidiaries' common stock through an initial public offering.
The distinctive feature of equity carve-outs that motivates our study is that, although all equity carve-outs result in the creation of a specialized equity claim, carve-out parents typically relinquish only partial control over the restructured assets.
Sterling's long history executing corporate carve-outs, the first of which occurred in 1984, was a critical factor in our success with the Liqui-Box investment," said Greg Elliott, Partner at The Sterling Group.
Specifically, he said, the for-profit carve-outs used by many managed care companies often deny covered care by claiming it is not medically necessary and hoping the psychiatrist won't challenge the denial.
Allen and McConnell (1998) examine the use of the carve-out stock offering proceeds for a sample of 188 equity carve-outs over 1978-1993 and find that announcement-period gains for parents are higher if the proceeds are paid out than if they are retained.
Sean Cunningham, Managing Director at GTCR stated, The acquisition of Cole-Parmer from Thermo Fisher underscores GTCR s extensive experience in corporate carve-outs, and highlights GTCR s continued enthusiasm for investing in companies that serve the broader life sciences industry.