Spin-Offs and Equity Carve-Outs

Eli Amir and Marco Ghitti ()
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Eli Amir: Tel Aviv University
Marco Ghitti: SKEMA Business School

Chapter Chapter 4 in Financial Analysis of Mergers and Acquisitions, 2020, pp 75-86 from Springer

Abstract: Abstract Spin-offs, carve-outs, and split-offs are popular ways for parent companies to divest assets, divisions or subsidiaries. All three transactions often result in separate public equity of the divested assets. The main reason for creating publicly traded equity is to increase the value of the parent’s shares by focusing on core businesses. Another motivation is to make the divested assets more visible to market participants, inducing information gathering, and by that increase its value. In this chapter, we discuss the motivation for these transactions and explain their accounting aspects.

Date: 2020
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DOI: 10.1007/978-3-030-61769-1_4

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