Carve Out

1
What is a carve out?
Why it is so important?
2
What is carve out?

• A carve out is a subsidiary of a larger company,
  which is legally and operationally independent
  from the parent company. A carveout is a business
  unit that is separate from the main company. It
  can be set up as a subsidiary, a joint venture,
  or an independent company.
• Equity carve-out is a provision of an agreement
  that specifies the percentage of the company that
  will be owned by the investor. The equity
  carve-out can be either fixed or variable,
  depending on what is negotiated between the
  parties.

3
Why is carve-out important?

• A carveout can be beneficial to the parent
  company in many ways. For example, it can help to
  reduce risk by separating it from the core
  business. The parent company will also have more
  control over its management and operations.
  Carve-out allows current companies to keep
  awareness on their activities as well as helps
  newly formed companies to stabilize themselves in
  new markets. Companies which adopt an equity
  carve-out method of restructuring can save
  capital gains tax as compared to companies which
  go for full spin-off.
• In any corporate Carve out, Archiving data
  without the help of the right tools can be a very
  time-consuming and difficult task. This can be
  even worse if you are a large company with large
  amounts of data. Archiving legacy data to tape
  can be both costly and time-consuming as well.
  Here we will look at different aspects of
  complete archiving with an IT carve-out.