equity carve-out (eco) - The Center for Paper Business and Industry ...
equity carve-out (eco) - The Center for Paper Business and Industry ...
equity carve-out (eco) - The Center for Paper Business and Industry ...
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EQUITY CARVE-OUT (ECO)<br />
CONCLUSIONS<br />
Restructuring of corporations is usually carried-<strong>out</strong> to improve<br />
per<strong>for</strong>mance.<br />
A majority-owned <strong>equity</strong> <strong>carve</strong>-<strong>out</strong> is one such <strong>equity</strong> claim that would<br />
allow the <strong>carve</strong>d-<strong>out</strong> business units to improve per<strong>for</strong>mance by<br />
exposing them to the capital market <strong>and</strong> attracting new investors.<br />
ECO brings a new management team into the organization. This usually<br />
results in improvement in operating per<strong>for</strong>mance, providing<br />
incentives <strong>for</strong> managers <strong>and</strong> increasing their strategic flexibility.