In a spin-off, the parent company distributes shares of the subsidiary that is being spun off to its existing shareholders on a pro-ratabasis, in the form of a special dividend. The parent … See more

In a split-off, the parent company's shareholders are offered shares in a subsidiary, but the catch is that they have to choose between holding shares of the subsidiary … See more

In a carve-out, the parent company sells some or all of the shares in its subsidiaryto the public through an IPO. Since shares are sold to the public, a carve-out also establishe… See more

When two companies merge, or one is acquired by the other, the reasons cited for such mergers and acquisitions (M&A) activity are often the same, such as a strategic fit… See more

Spin-offs, split-offs, and carve-outs are methods that companies use to divest assets, divisions, or subsidiaries. Companies may divest parts of the business fo… See more