Carve-outs are identical to spin-offs.

Name: Carve-outs are identical to spin-offs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Carve-outs and spin-offs are two different concepts in corporate finance. Carve-outs involve separating a subsidiary or division of a company and selling a portion of its ownership through an IPO, but the parent company retains some ownership. In contrast, spin-offs involve creating a new, standalone company through the distribution of shares to existing shareholders, with no ongoing ownership by the parent company.

Carve-Outs Are Identical to Spin-Offs