Equity carve-outs are a new type of corporate subsidiary which has many of the same features of traditional subsidiaries, but with some new innovative and unique twists.
In an article discussing the issue of equity carve-outs, Dennis Carey, with co-authors Patricia Anslinger, Kristin Fink and Chris Gagnon, points out that a corporate center is essentially a structure which allows a single, centralized body to bring value to its numerous individual business units. Entities such as operating companies, multi-business companies, holding companies, conglomerates and investment firms are all examples of this centralization which serves the needs of its subsidiaries. Equity carve-outs are a new way to structure a business on this model.
