Difference Between Spin-Off, Split-Off, Split-Up and Carve-Out (With Table)

Divestiture uses several methods and options like spin-offs, split-offs, split-ups, and carve-outs so that parent companies can efficiently divest to manage their portfolio strategy which would in turn help achieve their financial goals.

Divestiture is the art of trading or dissolving business assets/concerns for monetary, constitutional, and statutory causes. Divesting is significant to a company because it helps minimize liability, boost the profit of the shareholders and helps a company emphasize on re-structuring its stability and growth.

In the above article, the four divestiture methods, i.e, split-offs, spin-offs, split-ups, and carve-outs have been compared with each other to give a glimpse of each of their meanings, advantages as well as their drawbacks to provide the readers sufficient information necessary for them to settle on the most effective alternative among the four divestiture options.

It not only highlights on how these different methods help the company divest their assets or subsidiary companies but also emphasizes on how their ultimate objective helps shareholders increase their profit.


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  2. https://gadingss.learningdistance.org/index.php/gadingss/article/view/53