Glossary · Deal process
Carve-out
Also called carveout, carve-out transaction
Definition
A carve-out is the sale of part of a company, such as a division or product line. The hard part is separation: shared systems, staff, contracts and accounts have to be split out, and the seller often provides transitional services for a while. Diligence is harder because the unit may never have had its own accounts.
Where carve-out comes up
On this site, in our guides and in the conversations we've written up.
Guide How to choose a virtual data room A vendor that is perfect for a complex cross-border carve-out may be overkill for a mid-market sale, and vice versa. 
Video · SS&C Intralinks Cisco and Accenture on using diligence AI to plan integration before close Gregg Albert, who leads Accenture's M&A practice in the Americas, describes ingesting 10,000 contracts on very large carve-outs and giving buyers an early picture: here are the biggest customers, this is a large percent of revenue, here… 
Video · RSM South Africa What operational due diligence checks that financial and legal DD miss On a carve-out, Maxwell says the seller should check the remaining business is right-sized, with the right support at the right cost.
Video · SS&C Intralinks Cisco and Accenture on using diligence AI to plan integration before close Gregg Albert, who leads Accenture's M&A practice in the Americas, describes ingesting 10,000 contracts on very large carve-outs and giving buyers an early picture: here are the biggest customers, this is a large percent of revenue, here… Video · RSM South Africa What operational due diligence checks that financial and legal DD miss On a carve-out, Maxwell says the seller should check the remaining business is right-sized, with the right support at the right cost. Related terms
Asset purchase agreement The contract for buying selected assets and liabilities of a business, instead of its shares. Operational due diligence Diligence on how the business actually runs: processes, systems, supply chain, sites and people. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Distressed M&A Buying or selling a business in financial trouble, often under time pressure or in insolvency.