Explanation: Carve-Out

A Carve-Out refers to the strategic separation of a business unit, division, or asset from a parent company to form a legally and operationally independent entity. This is often done in preparation for a sale, a joint venture, or a public listing, but can also serve to sharpen business focus or unlock value. Carve-outs are complex processes that require careful planning across financial, legal, operational, and cultural dimensions. The goal is to ensure business continuity while creating strategic and structural clarity for both the parent and the carved-out entity.



back to last page

all glossary entries