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

See equity carve-out.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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While Fitch believes that bank branches will continue to decline in number and size on a national basis, some banks may supplement their digital banks with smaller branches in select regions where digital banks are being promoted, particularly where there is high population density.Fitch believes the emergence of digital bank carve-outs could present a challenge to the resiliency of the pure-play online banks' deposits over the longer term, particularly if the digital bank carve-outs are able to offer comparable rates and digital interfaces paired with strategically located branches, which is still a meaningful consideration for many depositors when choosing a bank.

Fitch Rtgs: Digital Carve-Outs in US an Emerging Threat to Online Banks

Schipper and Smith (1986) report that carve-out parents benefit from carve-outs in several ways.

An Examination of the Impact of Filings on Carve-out Parent Returns

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.

Don't be left holding the bag when good boys go bad

The pricing process of ECOs during the registration period begins when the parent firm announces the decision to carve-out the subsidiary through a public offering.

Does IPO pricing reflect public information? New insights from equity carve-outs

These MBHO carve-out implementations may potentially affect the use of new technology by setting limits on utilization or expanding reimbursements for the new technologies and by influencing the practice of medicine through utilization review and application of practice guidelines.

Economic incentives and contracts: the use of psychotropic medications

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.

Sale of lottery payments produces ordinary income

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.

Carve-Outs in Workers' Compensation: an Analysis of the Experience in the California Construction Industry

Carve-outs (1) seem too good to be true: a financial instrument that increases a company's stock price without sacrificing control over a valuable business unit.

When carve-outs make sense. (Current Research)

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.

Making sense of Spin-Offs, tracking stock, and equity carve-outs: Equity restructuring techniques differ strategically and financially. (IPOs)

This pilot study points to differences in collaborative relationships and the necessity of increased communication between primary care and mental health providers, especially in settings where primary care providers refer to mental health carve-out programs.

Linkages Between Primary Care Physicians and Mental Health Specialists

Like its predecessors, the carve-out enables a subsidiary to draw on the wisdom, experience, and practical assistance of the executive center.