Equity carve-out

An equity carve-out (English, German for example: “carving out equity”), sometimes also a spin-out , is a form of disinvestment in which a group shares shares in a subsidiary , e.g. B. in the course of a new issue ( initial public offering ) on the stock exchange , sold.

A distinction must be equity carve-out of a spin-off (partly out spin- known) (in German also split or spin-off), in which existing shareholders get shares in the subsidiary assigned "free"; the entire shares of a subsidiary are listed on the stock exchange. An equity carve-out, on the other hand, is a sale of shares in which usually only a minority of the subsidiary's shares are offered. The advantage for the parent company is that it can retain entrepreneurial control and at the same time receive the proceeds from the IPO.

The disadvantage compared to other forms of financing is that the subsidiary is subject to the strict control and publication regulations of a listed company. In addition, the parent company can no longer control the ownership structure of the shares traded on the stock exchanges.