What does CARVE-OUT mean?

CARVE-OUT meaning in Law Dictionary

CORPORATE FINANCE transaction where a business segregates a portion of its company, locations it in a different business entity, and sells it to an authorized or floats it through an INITIAL PUBLIC PROVIDING. A carve on may occur if organization seeks to permanently exit a company part which not considered important to strategic development, or if it wishes to boost additional MONEY for other corporate functions. Also referred to as SPINOFF.