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 ?
A carve-out for waste should be limited to "material" waste to the Property and, to the extent possible, should be limited to "intentional" acts by a borrower or its principals.
The initial carve-out followed by a second divestiture event increases company focus when the combination carve-out reduces number of industries for the parent.
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.
Similarly, Palm was in a better position to close strategic alliances with AOL, Motoral, and Nokia after its carve-out from 3Com.
If your company has decided to separate a subsidiary, you'll need to choose which method of going public is best for your firm: issuing tracking stock, doing an equity carve-out, or spinning off the unit to existing shareholders.
Quality of mental health care was perceived to be lower for patients who were referred to mental health carve-out programs compared to those referred to individual mental health providers (55.
Here is what a carve-out does to help companies exploit growth opportunities and increase shareholder value.
A South Korean diversified corporation, LS Group (LS) revealed on Monday that KKR & Co LP (NYSE:KKR) closed its investment in LS group's company, LS Automotive (LSA) and completed the acquisition and carve-out of KCF Technologies Co Ltd (KCFT), formerly known as LS Mtron.