OpCo
Business & Finance abbreviation · Finance
| Stands for | Operating company |
|---|---|
| Categories | Business & Finance |
OpCo stands for Operating company, a finance abbreviation.
Company in a group that actually runs the business, employing staff, holding contracts and generating revenue, as distinct from a holding company or property company. In financings, OpCo lenders have a direct claim on operating assets.
Example: The sale-leaseback moved the stores into a PropCo, leaving the OpCo to pay rent.
Usage notes
The OpCo/PropCo split, in which an operating company leases real estate from a related property company, became common in retail, hotels and care homes. Critics argue it can weaken operating businesses by loading them with rent. Also written Opco or opco.
Related abbreviations
More finance abbreviations
- NewCo – New company
- NOPAT – Net operating profit after tax
- NPV – Net present value
- NTM – Next twelve months
- NWC – Net working capital
- OCF – Operating cash flow
- OpEx – Operating expenditure
- PE – Private equity
- PI – Profitability index
- PIK – Payment in kind
- PIPE – Private investment in public equity
- PV – Present value