What Every General Counsel Should Know Before Doing a Spin-Off
Spin-offs are an attractive option for a public company looking to rationalize its portfolio and unlock shareholder value. At the same time, they are monster transactions that play out over a long timeline, all under strict tax rules that impact every step of the process. This article addresses what every GC should know when their Board starts talking about a spin-off.
February 12, 2024 at 02:12 PM
6 minute read
Risk and ComplianceSpin-offs are an attractive option for a public company looking to rationalize its portfolio and unlock shareholder value. They are tax-efficient, do not depend on a pool of willing buyers or a strong IPO market, and allow a high degree of flexibility in defining the scope and terms of the separation. At the same time, they are monster transactions that play out over a long timeline, all under strict tax rules that impact every step of the process.
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