Noun

(en noun)

(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.

* {{quote-book

, year=1999 , passage=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. , title=The McGraw-Hill Guide to Acquiring and Divesting Businesses , author=Edward E. Shea , page=227 , isbn=0070580308}}

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* {{quote-book

, year=2011 , passage=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. , title=International GAAP 2012: Generally Accepted Accounting Practice Under International Financial Reporting Standards , author=Ernst & Young , publisher=John Wiley and Sons , page=580 , isbn=1119969441}}

* {{quote-news

, year=2012 , date=May 5 , author= , title=Rangers likely to stay in SPL, says Michael Johnston , work=BBC Sport citation , page= , passage=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 .}}

(legal, finance)

*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.

* {{quote-book

, year=2012 , passage=Those who were more attached to NewCo discussed more positively their ability to charge OldCo for work, to take the 'commercial' view. , title=The Human Side of Outsourcing: Psychological Theory and Management Practice , author=Stephanie J. Morgan , isbn=1119943094}}