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It is a process in which a holding company sells partial subsidiary business interest or investments to public investors. A company going through a carve-out process does not sell the entire business unit. <\/b><\/p>
It only sells part of the equity stake in the business or renounces the control of that business on its own while holding on to the equity stake. <\/b><\/p>
During this type of distribution, the parent company sells part of its shares in its subsidiary to the public through an initial public offering (IPO), thereby effectively establishing the subsidiary as a separate company. <\/b><\/p>
Due to this, the company introduces new shareholders in the subsidiary as the shares are sold to the public. <\/b><\/p>
The holding company receives an adequate amount of cash flow as a result of buying and selling the shares in the public market.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t