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Thursday, November 12, 2020 | History

4 edition of Spin-offs and equity carve-outs found in the catalog.

Spin-offs and equity carve-outs

achieving faster growth and better performance

by James A. Miles

  • 65 Want to read
  • 39 Currently reading

Published by Financial Executives Reserch Foundation in Morristown, NJ .
Written in English

    Places:
  • United States.
    • Subjects:
    • Corporate divestiture.,
    • Corporate divestiture -- United States.

    • Edition Notes

      StatementJames A. Miles and J. Randall Woolridge.
      ContributionsWoolridge, J. Randall.
      Classifications
      LC ClassificationsHD2746.6 .M55 1999
      The Physical Object
      Paginationv, 117 p. :
      Number of Pages117
      ID Numbers
      Open LibraryOL395193M
      ISBN 101885065140
      LC Control Number98073869
      OCLC/WorldCa41557210

      Discuss various examples of corporate restructuring and divestitures in the past 10 years, including asset sales, equity carve-outs, and spin-offs. Include in your discussion the temporary merger of Dow-DuPont, and the breakup of the company into three different operating companies through the spin-off process, resulting in three different.   The degree of professionalization of carve-out processes and management has continued to increase in recent years. However, resource and time requirements and complexity are still frequently underestimated. In our experience, a lack of communication and transparency between the parties involved and a lack of experience are the main obstacles to efficient carve-out processes and prevent .


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Spin-offs and equity carve-outs by James A. Miles Download PDF EPUB FB2

Spin-Offs and Equity Carve-Outs [Miles, James A., J. Randall Woolridge, ] on *FREE* shipping on qualifying offers. Spin-Offs and Equity Carve-Outs/5(2).

Spin-Offs and Equity Carve-Outs: Achieving Faster Growth and Better Performance by James A. Miles; J. Randall Woobridge An apparently unread copy in perfect condition. Dust cover is intact; pages are clean and are not marred by notes or folds of any kind.

Seller Rating: % positive. Spin-offs and equity carve-outs by James A. Miles,Financial Executives Reserch Foundation edition, in EnglishPages: PURE DIVESTITURES, SPIN-OFFS AND EQUITY CARVE-OUTS Firms do not always go in for the combination.

Sometimes, especially parent companies, go for a reverse process of selling the assets of - Selection from Fundamentals of Financial Management, Third Edition [Book].

A sum of the parts is greater than the whole. At least that's the main idea of taking a business unit public through a spin-off, tracking stock, or equity carve-out. These restructuring techniques do more than raise equity funds.

Spin-offs and Carve-outs Dissertation zur Erlangung der Würde eines Doktors der Staatswissenschaften vorgelegt der Wirtschaftswissenschaftlichen Fakultät der Universität Basel von Roger Rüdisüli von Amden SG Difo-Druck GmbH Bamberg Salim Chahine, Marc Goergen, On the Publicity of Two‐Stage Spin‐Offs and Equity Carve‐Outs, Financial Review, /jx, 46, 4, (), ().

Wiley Online Library Lewis H.K. Tam, Change in parent’s cost of equity capital around equity carve-out, Corporate Ownership and Control, /cocv9i1c4art3, 9, 1. A spin-off, split-off, and carve-out are different methods a company can use to divest certain assets, a division, or a subsidiary.

While Spin-offs and equity carve-outs book choice of a specific method by the parent company. You would also learn about useful strategies for the growth of companies like spin-offs, divestitures, equity carve-outs, and so on and so forth.

Along with these, you will also be able to learn the takeover laws in major countries. Best takeaways from this Top Mergers and Acquisition book. Prior research on equity carve-outs and spin-offs argues that positive returns to parent firms reflect potential improvements in public understanding of subsidiary value, benefits from restructuring asset management, and opportuni- ties for enhancing incentives by tying managerial compensation to the market value of the subsidiary.

Find helpful customer reviews and review ratings for Spin-Offs and Equity Carve-Outs at Read honest and unbiased product reviews from our users. FW speaks with Alan J. Castillo at BDO USA LLP about managing risk and creating value through spin offs and carve outs. FW: How would you characterise recent activity in the carve outs and spin offs arena.

What overarching trends and developments are you seeing. Castillo: There has been an uptick in. In this paper we examine the valuation effects of equity carve-outs in Europe.

We demonstrate that equity carve-out announcements yield significant abnormal returns for the shareholders of parent. In some accounting texts, divestitures (referred to as sell-offs), spin-offs, and split-offs are all viewed as different forms of equity carve-outs and discussed in terms of how they affect the parent firm's shareholders' equity for financial reporting purposes.

Carve-Out vs. Spin-Off In an equity carve-out, a business sells shares in a business unit. The ultimate goal of the company Spin-offs and equity carve-outs book be to fully divest its.

We study whether the behavior of stock prices, in relation to size and book-to-market-equity (BE/ME), reflects the behavior of earnings. Using a sample of spin-offs, equity carve-outs, and.

"Restructuring through spin-offs, equity carve-outs, and tracking stockscan create shareholder value. In the longer term, equity carve outs in which the parent company retains majority ownership easily outperform the Russell index, with an average annual total return to shareholders (TRS) in the two years after issue of 24% as compared with 11%.

If things are okay, parent company can decide to raise money for subsidiary by spin-off in future. Unlike spin-offs, the parent in an equity carve-out maintains a controlling interest in the carved out subsidiary so that some residual cross subsidization and investment inefficiency may.

Equity Carve-outs. Equity carve-outs are referred to a percentage of shares of the subsidiary company being issued to the public. This method leads to a separation of the assets of the parent company and the subsidiary entity.

Equity carve outs result in publicly trading the shares of the subsidiary entity. Disinvestment. pure spin-offs separately. Indeed, a variety of studies suggest substantive differences in the return characteristics of spin-offs, IPO’s, and carve-outs. In general, although causality is not the focus of this particular article, it may be said that two significant impediments to the operation of an efficient market in spin-offs relate to.

LBOs, Spin offs and Equity. Carve-out Spin offs. Typically parent corporation distributes on pro rata basis, all the shares it owns in subsidiary to its own shareholders.

No money generally changes hands Non taxable event as long as it jumps through substantial hoops. Spin offs.

Corporate Spin-Off Mechanics. Although tax rules have permitted spin-offs since the mids, spin-offs did not occur with as much frequency and within major corporations until the s, when a trend was ushered in by the spin-off of seven regional Bell companies by AT&T between and A debt/equity swap by necessity occurs as part of a larger demand event with respect to the Subsidiary's equity.

Examples include a pre-spin-off IPO carve-out (e.g. Lucent/Agere), the admission of the Subsidiary to the S&P (AT&T Wireless) or the merger of the subsidiary into a larger public company.

This study analyzes how firms choose between a spin-off and an equity carve-out as a way to divest assets. Using a sample of 91 master limited partnerships that were issued to the public, we find that riskier, more leveraged, less profitable firms choose to divest through a spin-off.

The spin-off firms are smaller and less profitable then the carve-out firms. Professor Miles' co-authored the text "Spin-offs and Equity Carve-outs" published by the Financial Executives Research Foundation. His research is in the areas of corporate finance, investments, and personal financial planning.

He recently co-authored an online course about personal financial planning that has had about Penn State students. Spin-offs – Going and growing strong Verso is the only private equity company that is actively investing in smaller, high-growth spin-offs in Europe. We have strong experience and expertise in finding and carving out parts of large companies that are no longer their core operations.

Needham & Company’s investment banking group is focused on delivering creative, highly-tailored solutions to our growth company clients. Our broad-based investment banking capabilities include public and private equity capital raises and strategic advisory services, enabling growth companies to realize their potential, including.

Equity carve-outs result in a positive cash flow to the parent company. An equity carve-out is different from a spin-off because of the induction of outsiders as new shareholders in the firm. Secondly equity carve-outs require higher levels of disclosure and are more expensive to implement.

mergers acquisitions and corporate restructurings Posted By Roger Hargreaves Library TEXT ID e94 Online PDF Ebook Epub Library corporate restructurings is an all inclusive guide to mas that illustrates how restructuring can be used successfully how.

For valuing companies, the book has added three new tools under the banner of replacement value: sum of the parts, spin-offs and carve-outs. Each has a. Izanec: As noted, spin offs and carve outs are different types of transaction in this respect. Carve out transactions are like other M&A deals – a core element of the negotiation between the seller and the buyer will focus on risk allocation, including representations, warranties and indemnities.

This is a chapter from the second edition of my corporate finance book on spin offs, divestitures, equity carve outs and tracking stock.

It is not path-breaking, by any stretch of the imagination, but it provides a comparison of the different actions, and why a firm may choose one over the other. factor in driving decisions to pursue equity carve-outs.

Obviously, this result is at odds with the positive announcement effects. Chapter 2 builds on the results of chapter 1. This section looks jointly at spin-offs, sell-offs and equity carve-outs in an effort to quantify the factors that induce parent firms. N2 - We examine valuation effects on firms in the same industry as entities that are the subject of carve-outs (initial public offerings of subsidiary equity), spin-offs, and asset sell-offs.

Share price reactions for rivals are negative in response to equity carve-outs. Spin-offs have generally outperformed the broad market. As of Jthe Bloomberg U.S. Spin-Off Index gained more than 22% in the past year and outpaced the 13% gain seen by the S&P The index returned % between its inception on December and Decemwhile the S&P Index returned % during that same period.

We have a wealth of experience helping clients successfully execute spin-offs, split-offs, carve-outs and carve-out IPOs and Reverse Morris Trust transactions.

Deep Practical Advice We offer our clients extensive experience in navigating the legal, tax, financing, governance and other challenges that are presented by these complex transactions.

Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control.

Only part of the shares are offered to the public, so the parent company retains an equity stake in the subsidiary. Typically, up to 20% of subsidiary shares is offered to. Mike advises clients on accessing the debt and equity capital markets, by providing clients with technical/project management advice on complex accounting and financial reporting issues associated with the SEC registration process, IPO's, SPAC mergers, A debt and equity offerings, divestitures, spin-offs and carve-outs, and GAAP conversions.

Verso is a Finnish private equity company focusing on spin-offs and growth companies. With more than carve-outs and M&A transactions done by our team, we have extensive experience in building and executing even challenging carve-outs quickly and effectively.

Spin-offs, equity carve-outs, and initial public offerings have slowed down from their heyday in the s, but these transactions will surely come into vogue again.

This book covers the entire spectrum of activities in a typical merger transaction—starting from searching for candidates to closing the deal. It is designed to be a rigorous yet relevant book on mergers, acquisitions and corporate restructuring for students, research scholars and practitioners of finance.

Spin-offs, Equity Carve-outs and.The index seeks to measure the performance of the equity securities of the largest and typically most liquid initial public offerings ("IPOs") (including spin-offs and equity carve-outs) of.Spin-Offs & Carve-Outs on the NYSE With 23 spin-off and 19 carve-out transactions taking place on the NYSE, has been a landmark year for these transactions.

It is a testamant to the strength of the relationship between the NYSE and our listed community.