Chapter 17. Other Restructuring

Other Types of Restructuring: Spin-offs, Split-offs, Carve-outs, and Letter Stocks

In many cases, mergers and acquisitions are performed with business units which are carved out of existing companies. In some cases, these are companies which were established as separate units within existing and well-established companies, and which are raising money in the private or public markets to continue their operations. In other cases, shares in business units within a company are distributed to the company's shareholders (spin-off). This section briefly reviews the customary spin-off options, starting from spin-offs of subsidiaries through the raising of capital for subsidiary units and ending in the creation of shares ...

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