Word.ws English Dictionary

newco

newco 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

newco (plural newcos)

  1. 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.
    • 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.1999, Edward E. Shea, The McGraw-Hill Guide to Acquiring and Divesting Businesses, →ISBN, page 227
    • This is not an unusual situation since some acquisition vehicles are "newcos" that have not conducted any business activities prior to the acquisition.2000, Tax strategies for corporate acquisitions, dispositions, ..., volume 2, Practising Law Institute
  2. A placeholder name for a business in textbooks.
    • 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.1982, Arthur M. Borden, Going Private, pages 3–4
    • 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).2003, William T. Allen, Reinier H. Kraakman, Commentaries and Cases on the Law of Business Organization, page 439

Examples of newco in a sentence

  • 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 target2003, Mergers and acquisitions yearbook:
  • Sales of divisions of larger businesses usually require the creation of a newco.2008, Stephen Bloomfield, Venture Capital Funding: A Practical Guide to Raising Finance, page 160:
  • 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.2008, Steve Cropper with Mark Ebers and Chris Huxham, The Oxford Handbook of Inter-Organizational Relations, page 91:
  • 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.2012 May 5, “Rangers likely to stay in SPL, says Michael Johnston”, in BBC Sport:

Forms of newco

pluralnewcos

Origin of newco

From new + co.

Questions about newco

What does newco mean?
Newco means 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.
How do you use newco in a sentence?
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
What part of speech is newco?
Newco is a noun.
What is the plural of newco?
The plural of newco is newcos.

Words near newco in the dictionary

  1. Newcastleton
  2. newchurch
  3. Newchurch and Merthyr
  4. Newchurchman
  5. Newchurchmen
  6. newco
  7. newcoin
  8. Newcom
  9. newcomb
  10. Newcomb ball
  11. Newcomb's paradox

Source and license

Adapted from Wiktionary: newco (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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Cite this entry: “newco.” Word.ws, https://word.ws/newco. Based on Wiktionary, CC BY-SA 4.0.