Equity Carve-Out vs Divestiture

This problem tests your understanding of how companies separate assets or businesses through different M&A structures, and how to distinguish a partial equity sale from a full disposal. In investment banking interviews, this matters because interviewers want to see whether you can classify transaction types correctly, understand what changes for the parent company and the subsidiary, and explain how ownership, control, and proceeds are affected by each structure.

It also checks whether you can think through the strategic purpose of a transaction. A strong answer should explain the legal and ownership implications, the role of public investors, and why companies might choose one route over another when raising capital or monetizing a business unit.