newco

English

Etymology

.

Noun

newco (plural newcos)

1. (business) 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. (law, finance) A placeholder name for a business in textbooks.
   • 1982, Arthur M. Borden, Going Private, page 3-4:

     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.

   • 2003, William T. Allen, Reinier H. Kraakman, Commentaries and Cases on the Law of Business Organization, page 439:

     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).

   • 2008, Edward D. Hess, Charles D. Goetz, So, You Want to Start a Business?: 8 Steps to Take Before Making the Leap, page 62:

     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.

See also

• shell
• clean shell