Carve out


Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms.

Carve out

Usually occurs when a company decides to IPO one of their subsidiaries or divisions. The company usually only offers a minority share to the equity market. Also known as equity carve out.

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.
References in periodicals archive ?
The design of individual illustrations will differ widely depending upon the circumstances of the existing group program and the proposed method of funding the group carve out. However, it is essential to compare annual costs to both the employer and executive, both before and after the carve out.
In addition to employee benefits, Arkin Youngentob focuses on the design of executive benefits, including multi-life disability and life, key person, company-owned life insurance, carve outs, business succession funding and corporate-sponsored retirement plans.
The Bayer Divestment Business includes: Bayer's entire vegetable seeds business; Bayer's entire broad acre seeds and traits business including its R&D organisation, subject to limited carve outs; a number of Bayer non-selective herbicide assets, in particular Bayer's global glufosinate business assets and three lines of research; a number of Bayer nematicidal seed treatment assets and products; and Bayer's global digital agriculture assets and products.