Definition
Carve-out is the sale of a subsidiary or business unit while retaining partial ownership. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Carve-out on the board and restates it: “Sale of a subsidiary or business unit while retaining partial ownership.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Carve-out as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Carrying cost
Expenses associated with holding inventory, including storage and insurance.
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Cartel
Group of companies that collude to control prices and limit competition.
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Case law
Legal principles established through court decisions and judicial precedents.
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Cash balance
Amount of cash and cash equivalents held by a company at a point in time.
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