Carve Out Model: Strategic Value Creation in M&A Transactions
Carve Out Model: Strategic Value Creation in M&A Transactions By: Utkarsh Kaushik November 3, 2025 Share: In today’s M&A landscape, the carve-out model is becoming increasingly relevant as companies seek to refine their portfolios and investors aim to achieve long-term value through a strategic investment process. In EY’s 2024 Global Divestment Study, roughly 70% of large companies are planning at least one carve-out by 2026, typically to help fund growth or improve strategic focus. In addition to corporate restructuring, the carve-out process attracts private equity investors who are searching for lower-optimized assets that they can turn into more optimized and potentially desirable assets. So, the carve-out model could be considered a bridging model for corporate restructuring and growth investing to promote efficiencies, create value, and competitive standing in a market. Carve Out Model and Its Market Relevance Carve Out M...