Carve-Outs or Spin-Offs

Carve-outs and spin-offs are strategies used by companies during mergers and acquisitions to separate a part of their business. A carve-out involves a company selling a portion of its operations to another firm while retaining some ownership, whereas a spin-off creates a new independent company from a segment of the parent company’s business, distributing shares to existing shareholders. These strategies can help businesses focus on core operations, improve financial performance, and unlock value by allowing the separated entity to operate independently.