I got a few questions with these term. I thought it would be a good idea to toss them up and describe them. Spin Off Split Off Equity Carve Out Divestiture A different set (M&A material) Statutory Subsidiary
spin off - company sperates and seperatley capitalizes a component business. shareholders end up with equity in 2 companies split off - shareholders of parent company are given shares in a newly formed entity in exchange for shares of the parent divestiture - outright sale or liquidation of a component busininess equity carve out - restructuring by forming a new entity and selling the equity to outsiders.
Niblita75 Wrote: ------------------------------------------------------- > I got a few questions with these term. I thought > it would be a good idea to toss them up and > describe them. > > Spin Off > Split Off > Equity Carve Out > Divestiture > > A different set (M&A material) > > Statutory > Subsidiary Good Q Nibs… Similar to what budfox427 explained above. Spin off …new entity is formed and the existing mangement has no control over the new entity. shares are issued to existing SH. curve out … similar to spin off only diff is shares are sold to outsiders. split off …new division is formed and share are issued to existing SH in exchange of share of parent co. > A different set (M&A material) > > Statutory - T (dead) > Subsidiary - T (still alive as subsidiary)
Nice work guys.