Equity carve out

(redirected from Carve-Outs)

Equity 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 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 ?
"It is likely that public-to-private deals and corporate carve-outs will continue to feature more prominently in sourcing deals in the Private Equity portfolio," continued Breedon.
Apax Global Alpha Ups Interim Payout On "Strongest" Results Since IPO
The firm invests in founder-owned businesses as a first-time capital partner, as well as in corporate carve-outs, taking both control and significant, minority-stake positions.
StratEx sold to Toast
Wynnchurch Capital, LLC is a middle-market private equity investment firm that manages a number of private equity funds with USD 2.2bn of committed capital under management and specialises in recapitalisations, growth capital, management buyouts, corporate carve-outs and restructurings.
Wynnchurch Capital Acquires Marble Products Manufacturer MPL Holdings
CVS Health will optimize government programs, introduce new risk-based carve-outs, develop programs aimed at complex conditions like chronic kidney disease, and create new analytics products.
CVS Health plans to have 1,500 new HealthHUBs by end of 2021
Wynnchurch Capital, LLC manages a number of private equity funds with USD 2.2bn of committed capital under management and specializes in recapitalizations, growth capital, management buyouts, corporate carve-outs and restructurings.
Wynnchurch Capital acquires Indiana-based Boss Industries
Murphy said he opposed the carve-outs and the slower rate of wage increases.
Source: deal met on $15 wage increase
It is expected that digital bank carve-outs will offer higher rates to depositors and provide additional digital account functionality to compete with the online-only banks.
Fitch Rtgs: Digital Carve-Outs in US an Emerging Threat to Online Banks
Since pure initial public offerings (IPOs) do not trade until the ex-date, equity carve-outs (partial IPOs) provide an opportunity to track the impact of initial and subsequent filings on parent company returns throughout the filing process from initial filing to first trade date.
An Examination of the Impact of Filings on Carve-out Parent Returns
Discussion includes corporate spinoffs, equity carve-outs, targeted stock offerings, bankruptcy, reorganizations and workouts, and downsizing programs.
Mergers, Acquisitions and Corporate Restructuring: Text and Cases, 2nd Edition
Summary: Mike Pompeo, US Secretary of State, in a letter to the EU ministers, has rejected an appeal for carve-outs in finance, energy and healthcare.
Trump is right on Iran, but he needs Europe's support
He also added Australia to the list of likely carve-outs. --AFP
Trump to EU: We'll Drop our Tariffs if you Drop Yours
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