newco
Word Rarity
Very rare
Frequency: Zipf frequency 1.93 in modern English
10
Scrabble Score
5
Letters
2
Syllables
5
Unique Chars
Meaning
noun
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.
noun
A placeholder name for a business in textbooks.
Example Sentences
- "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."
Etymology
From new + co.