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Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

equity carve-out

In an equity carve-out, a company lists a part or division of their business on the stock market in an initial public offering (IPO). This technique is part of the spectrum of techniques employed in mergers & acquisitions.

In most cases, companies keep majority control (more than 50 per cent) over that business division althouth they may opt to reduce the stake later. The company might also opt to distribute shares in the new entity to its existing shareholders instead of selling them on the...

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