Terms Beginning With 'c'

Carve-Out

  • January 17, 2020
  • Team Kalkine

In business context, Carve-Out refers to a business unit or units that are spun off or carved out of a larger parent company. The reasons encouraging the parent company to do so may include a service or product not being relevant anymore to its overall strategy, high debt prompting the company to monetize a valuable piece of the business for minimising debt or simply that the unit has a large value that is not being reflected in the overall valuation of the company.

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