Professional Documents
Culture Documents
Spinoff
A new, independent company created through selling or distributing new shares for an
existing part of another company.
spin-off
Split-Off
Exchanging the stock of a subsidiary for shares in a parent company.
split-off
Split-Up
Exchanging the stock of two or more subsidiary companies for all of the parent
company's stock, followed by the liquidation of the parent company.
A split-up is an effective way to break a company into two or more independent
companies.
split-up
Carve-out
1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells
a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering.
2. Where an established brick-and-mortar company hooks up with venture investors and a
new management team to launch an Internet spinoff.
In most cases the parent company will spinoff the remaining interests to existing
shareholders at a later date when the stock price is much higher. Also known as a
"carveout" or an "equity carve out."