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CARVE-OUT Definition & Legal Meaning

Law dictionary entry - legal definition of embargo

Definition & Citations:

A CORPORATE FINANCE transaction where a company segregates a portion of its business, places it in a separate corporate entity, and sells it to a third party or floats it through an INITIAL PUBLIC OFFERING. A carve out may occur if the company seeks to permanently exit a business segment that is no longer deemed essential to strategic growth, or if it wishes to raise additional CAPITAL for other corporate operations. Also known as SPINOFF.

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