Carve-out: Difference between revisions
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imported>Doug Williamson (Add definition - source - Investopedia - https://www.investopedia.com/terms/c/carveout.asp) |
imported>Doug Williamson (Update links.) |
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2. ''Corporate finance''. | 2. ''Corporate finance''. | ||
A transaction in which a | A transaction in which a holding company sells an equity interest in one of its subsidiary companies to external investors. | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Exception]] | * [[Exception]] | ||
* [[Holding company]] | |||
* [[Loan agreement]] | * [[Loan agreement]] | ||
* [[Negative pledge]] | * [[Negative pledge]] | ||
* [[Regulation]] | * [[Regulation]] | ||
* [[Subsidiary]] | * [[Subsidiary]] | ||
Latest revision as of 22:06, 2 December 2022
1. Documentation and regulation.
A carve-out is a special exception.
A carve-out can be used in the context of a loan agreement; a negative pledge might apply to all but specific subsidiaries.
Carve-outs might also be used in the context of regulation where, effectively, a section or sections might be dis-applied.
2. Corporate finance.
A transaction in which a holding company sells an equity interest in one of its subsidiary companies to external investors.
