management carve-out

Definition

When executives negotiate a special deal ensuring they get paid even if the company fails and everyone else gets screwed. Because apparently captains should abandon ship with golden parachutes.

Example Usage

Despite the disastrous exit, the CEO walked away with millions thanks to the management carve-out in the term sheet.

Source: Private equity and M&A terminology

Related Terms

Beginner

debtor

A person or entity that owes money, making them the star of collection agencies' dreams and creditors' spreadsheets. In bankruptcy proceedings, they're the main character in a financial tragedy. Distinguished from a borrower by the implication that payment is overdue or the relationship has gone south.

💰 Finance / Accounting

Intermediate

disbursed

The fancy financial way of saying money actually left the account and went somewhere else, as opposed to being promised, allocated, or trapped in bureaucratic purgatory. It's the moment when funds stop being theoretical and become someone else's problem or pleasure. Government agencies and large organizations love this word because it makes spending sound more sophisticated.

💰 Finance / Accounting

Beginner

book-keeping

The meticulous art of recording every financial transaction in a systematic way, traditionally done by people who enjoy spreadsheets more than human interaction. It's the foundation of accounting, involving ledgers, journals, and an obsessive attention to making sure debits equal credits. The only profession where 'excitement' means finding a balanced account.

💰 Finance / Accounting

Beginner

lender

The entity that gives you money now in exchange for you giving them more money later, ideally with interest and your sanity intact. Banks, credit unions, and that one friend who still brings up the $20 from 2015 all qualify.

💰 Finance / Accounting

Advanced

Margin Call

The terrifying phone call from your broker informing you that your borrowed-money bets have gone south and you need to cough up more cash immediately. It's the financial equivalent of your landlord and your bookie showing up at the same time demanding payment.

💰 Finance / Accounting

Advanced

tranche

French for 'slice,' because everything sounds fancier in French, especially when you're dividing up debt into pieces. In finance, it's a portion of a larger pool of securities, bonds, or loans, each with different risk levels and maturity dates. Investment bankers use this term to make selling chopped-up mortgages sound sophisticated—we all remember how that worked out in 2008.

💰 Finance / Accounting

Translate This Term

See “management carve-out” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Beginner

AWL

When used at the end of a message, AWL stands for "always with love." This sign-off lets you know the sender truly loves...