Mergers and acquisitions (M&A) are seen as a key factor to growth in business. It seeks to acquire companies that offer the same products, goods, or services. One more process is used. The M&A is done by purchasing a divestiture of a unit or division from the selling company is acquired.

This process is called carve out. It is a partial divestiture of a business unit, subsidiary, or division. It is a complex strategy where the parent company retains equity and shares in the profits of the divested unit.