A carveout (carve-out) is when a company separates part of its business (a product line, division, assets, or subsidiary) from the rest—most often to sell it, spin it off, or make it a standalone operation.
Common uses:
- M&A: seller “carves out” a division to sell to a buyer.
- Deal terms: a “carve-out” can also mean an exception to a rule (e.g., an indemnity carve-out, non-compete carve-out).
