Ensign Group: The Spin-Off of CareTrust REIT

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

Chapter Chapter 14 in Financial Analysis of Mergers and Acquisitions, 2020, pp 239-254 from Springer

Abstract: Abstract A spin-off is basically a dividend-in-kind whereby a company distributes shares in a subsidiary to its shareholders on a pro-rata basis. The purpose of this case is to explain the reasons why companies spin-off parts of their operations. We also explain and demonstrate the accounting treatment of a spin-off transaction highlighting the differences between US GAAP and IFRS. We use the interesting case of Ensign where the spun-off entity is a Real Estate Investment Trust (REIT). The transactions unlocked value for the existing shareholders and created an attractive investment in a REIT for new and existing investors.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-61769-1_14

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DOI: 10.1007/978-3-030-61769-1_14

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