Equity carve-outs Corporations often restructure their capital and assets to improve the flow of capital...

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Finance

Equity carve-outs

Corporations often restructure their capital and assets to improve the flow of capital and information and to add value to shareholder wealth. Restructuring often takes place through spin-offs, equity carve-outs, partial public offerings, and tracking stocks.

Consider the following statement about equity carve-outs:

The subsidiary company can get a fair valuation as a stand-alone firm rather than as a part of another business entity.

Based on your understanding of equity carve-outs, is the statement above an advantage of equity carve-outs?

Yes OR No

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