Question

An equity carve-out differs from a spin-off for all but which one of the following reasons?

Answer 1

A spin-off, split-off and carve-out are different methods that a company can use to divest certain assets, a division or a subsidiary. While the choice of a specific method by the parent company depends on a number of factors as explained below, the ultimate objective is to increase shareholder value. We begin by citing the main reasons why companies choose to divest their holdings.