differences between Equity carve out, Spin off ,Split off , Divesture ?

CFA Level II
#1

How to remember these

#2

step 1) read the definitions

step 2) close your eyes and say the definitions - if you can’t go to step 1

Repeat until may 31th

#3

This is what I use to remember:

C arve O ut: C reation O f a new legal entity (only one where there’s new cash from sale of entity)

SPIN Off: S hareholders P roportional I n N ew and separate entity. Own stock in 2 separate companies now.

S plitoff: given shares of new company in exchange for shares of parent company. S=Split - Exchanging

Divestiture - sale liquidation or spin-off of a division (just have to remember this one)

#4

Are first 3 part of divesture ?

#5

Thanks!!