A carveout is a subsidiary of a larger company, which is legally and operationally independent from the parent company. A carveout is a business unit that is separate from the main company. It can be set up as a subsidiary, a joint venture, or an independent company.
Equity carve-out is a provision of an agreement that specifies the percentage of the company that will be owned by the investor. The equity carve-out can be either fixed or variable, depending on what is negotiated between the parties.
A carveout can be beneficial to the parent company in many ways. For example, it can help to reduce risk by separating it from the core business. The parent company will also have more control over its management and operations. Carve-out allows current companies to keep awareness on their activities as well as helps newly formed companies to stabilize themselves in new markets. Companies which adopt an equity carve-out method of restructuring can save capital gains tax as compared to companies which go for full spin-off.
Carve outs from existing systems such as SAP, Oracle, Navision require a very deep understanding of database structures and database models. A carve out is always a technical challenge, which AvenDATA has been facing for many years. The backbone here is our experienced SQL Developer department consisting of about 50 people who deal exclusively with database models and their challenges on a daily basis
If you are looking for a company that understands the carve out of company codes, clients or plants or similar, then you have come to the right place. Carve Out is quasi the little brother of complete archiving. This means that the carve out is very similar to complete archiving in terms of the procedure and technical processes. In this respect, it was not surprising that after a few archiving and shutdowns of legacy systems, customers approached us with the request to also perform corresponding carve outs.