Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control.

Equity Carve-out is adopted when the company does not expect to find a single buyer for the entire business, or it wants to have some control over the new business unit. An Equity Carve-out strategy usually benefits both the parent company, as well as the new company.

2024年6月11日 · In an equity carve-out, a business sells shares in a business unit. The ultimate goal of the company may be to fully divest its interests, but this may not be for several years. The...

Equity carve-outs provide an opportunity for the parent company to raise capital while maintaining control over the strategic direction of the business. In an asset carve-out, specific assets or a distinct portion of a business are separated from the parent company to form a new entity.

2022年6月9日 · “What does Equity Carve Out mean? What’s the idea behind the concept of this, and what are the effects? What are its advantages & disadvantages? What are the points to consider before exercising the option of this option?”. This article gives a quick insight into the topic of Equity Carve-Outs.

2022年5月26日 · Equity Carveout is a type of corporate restructuring strategy (divestiture) wherein a company sells a part of its business or one division through IPOs (initial public offerings). To put it simply, it is a process of separating a subsidiary from the parent company into a standalone company.

2023年12月23日 · An equity carve-out, also known as a partial IPO, occurs when a parent company sells a percentage of its ownership stake in a subsidiary to public market investors through an IPO. The parent company retains majority control, usually selling 20-49% of the subsidiary's equity.

2023年12月18日 · A carve-out is a process in which a business separates (or carves out) a minority ownership stake in a subsidiary to an outside investor, such as another business. Carve-outs frequently take place when companies want to leverage a non-core part of their business and use the equity for other purposes.

An equity carve-out involves conversion of an existing division or unit into a wholly owned subsidiary. A part of the stake in this subsidiary is sold to outsiders. The parent company may or may not retain controlling stake in the new entity.

An equity carve-out, also known as a partial spin-off, is a corporate restructuring strategy where a parent company sells a minority stake in a subsidiary to the public through an initial public offering (IPO).