what is a carve out 
a carve out is the partial divestiture of a business unit in which a parent company sells a minority interest of a subsidiary to outside investors a company undertaking a carve out is not selling a business unit outright but instead is selling an equity stake in that business or relinquishing control of the business from its own while retaining an equity stake a carve out allows a company to capitalize on a business segment that may not be part of its core operations investopedia julie bang