n. The process of setting up a portion of a corporation as a separate business and selling some of its shares in an initial public offering; the business so formed.
In a pure spinoff, a parent company distributes 100 percent of its ownership interest in a subsidiary company to its existing shareholders in the form of a dividend.

In a partial spinoff, or carve-out, the parent company sells less than 20 percent of its ownership interest in the subsidiary company to the public.
—Andrew Leckey, “Spinoffs May Be Undervalued Opportunities,” Chicago Tribune, March 13, 1999
Managed care also spawned a special mini-sector of companies devoted solely to mental health and substance abuse treatment. The leader of these behavioral 'carve-out companies' is based in Atlanta: Magellan Health Services.
—Andy Miller, “Managed care and mental health,” The Atlanta Journal and Constitution, August 30, 1998
1990 (earliest)
The limited partnership carve-out was primarily tax-driven, analysts agreed. Under current law a publicly-traded limited partnership can be exempt from corporation taxes if it derives 90% or more of its earnings from natural resources-related activities.
—“Panhandle Eastern Taps Private Mart to Fund Spinoff,” Mergers & Acquisitions Report, February 12, 1990
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