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 ?
He also added Australia to the list of likely carve-outs.
Trump to EU: We'll Drop our Tariffs if you Drop Yours
President Donald Trump`s push to introduce protectionist tariffs were tempered by signs the move could include carve-outs for key partners.
Market opens in green, Sensex up over 250 points
There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well," Sanders told reporters.
Mexico, Canada, other countries may be exempt from US tariffs
2bn of committed capital under management and specialises in recapitalisations, growth capital, management buyouts, corporate carve-outs and restructurings.
Wynnchurch Capital Completes Acquisition of Heartland Automotive
To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe.
OpenGate Capital Finalises Acquisition of Wireless Collaboration Software Supplier Mersive
2 billion of committed capital under management and specializes in recapitalizations, growth capital, management buyouts, corporate carve-outs and restructurings.
Wynnchurch Capital invests in America II
Advents expertise in executing complex carve-outs combined with our deep sector experience will ensure William Lea Tags transition to an independent company is smooth and will put it on a solid foundation from which it can grow and prosper.
United States : Deutsche Post DHL Group sells Williams Lea Tag to Advent International
However, the actual terms of "bad boy" guaranties may go beyond including the typical bad-boy carve-outs such as gross negligence, fraud, willful misconduct, intentional material misrepresentations, physical material waste and misapplication of proceeds.
Don't be left holding the bag when good boys go bad
We look forward to drawing on our extensive experience with similar corporate carve-outs in acquiring and operating this attractive portfolio of 330 stores, which have an annual run-rate of approximately $500 million in sales," commented Peter Morrow, a managing director at Sycamore.
Dollar Tree is divesting 330 stores
Services provided within these carve-outs will not be considered fiduciary investment advice.
The Angle
US companies have used equity carve-outs (partial IPOs) as a reorganization tool for some time to unlock subsidiary values and to increase the parent's corporate focus or to create a pure play for the subsidiary.
An examination of the long-term results of acquired carve-out/spin-off combinations
Companies seeking to optimise their business face complexity in both IFRS and US GP accounting for mergers, acquisitions, initial public offerings and carve-outs.
Kingdom 'set for growth'
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