Newco
noun ·Rare ·Advanced level
Definitions
- 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."
- 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."
Example
More examples"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."
Etymology
From new + co.
Related phrases
More for "newco"
Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.