Definition
Carve-out
Sale of a discrete business unit out of a larger parent, requiring separation of shared services.
Carve-outs are operationally complex because the target depends on the parent for IT, finance, HR, real estate, and sometimes customer relationships. The negotiated answer is a Transitional Services Agreement (TSA), under which the seller continues to provide services for 6–18 months while the buyer stands up its own functions. TSA scope, pricing, and exit triggers are heavily negotiated.
See also
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