What is a Carve-Out and Why is it Crucial for Your Business?
                     What is a carve out?
Why it is so 
important?
What is carve out?
A carve out 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.
Why is carve-out important?
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.
In any corporate Carve out, Archiving data without the help of the right tools can be a very time-
consuming and difficult task. This can be even worse if you are a large company with large amounts of data. 
Archiving legacy data to tape can be both costly and time-consuming as well. Here we will look at different 
aspects of complete archiving with an IT carve-out.