Meaning of newco | Babel Free

Definitions

1. A new company, especially one spun-off from or replacing an existing company as a legal fiction to maintain ownership over an entity while separating it from the old company financially.
2. A placeholder name for a business in textbooks.

Examples

“As described in the previous section, a leveraged buyout by a Newco that does not result⟳ in a change⟳ of control⟳ is treated as a recapitalization and EITF 88-16 prescribes the use⟳ of predecessor basis.”

“This is not an unusual situation since some acquisition vehicles are "newcos" that have⟳ not conducted any business activities prior to the acquisition.”

“If buyer has no such plans then the purchaser will probably be a newco, since in this structure⟳ the corporate veil will protect⟳ the buyer's assets from claims made against the target⟳”

“Sales of divisions of larger businesses usually require⟳ the creation of a newco.”

“In this chapter we define⟳ collaborations between firms that involve⟳ the creation of a separate⟳, autonomous, and legally recognized firm—a 'newco'—as a joint venture.”

“Another situation in which a Newco may be identified as the acquirer is illustrated in Example 10.8 below, where a parent uses a Newco to facilitate a public flotation of shares in a group of subsidiary companies.”

“Rangers manager Ally McCoist accepts there is likely to be opposition from fans of other clubs should the Ibrox side remain⟳ in the SPL as a newco.”

“A merger can be implemented between the issuer ("Oldco") and a new corporation ("Newco") owned by the proponents, as a result⟳ of which Oldco shares not owned by the proponents are converted to cash and Newco shares remain⟳ outstanding.”

“In this structure⟳, the acquirer (A) forms a wholly owned subsidiary (call⟳ it NewCo). A will transfer⟳ the merger consideration to NewCo in exchange⟳ for all of NewCo's stock⟳. Then Target⟳ will merge into NewCo (or NewCo will merge into Target⟳).”

“For this example, we're going to assume⟳ that a new company (we will call⟳ it NewCo) is going to build⟳ brick homes in the $250,000 price range.”

“Those who were more attached to NewCo discussed more positively their ability to charge OldCo for work⟳, to take⟳ the 'commercial' view⟳.”

CEFR level