A parent company creates a corporate separation and distributes shares in a division or subsidiary to parent company shareholders to create a wholly separate business entity.<\/p>" } } , { "@type": "Question", "name": "How Do Spin-Offs Contribute to Corporate Strategy?", "acceptedAnswer": { "@type": "Answer", "text": "
Separation within a corporation can force companies to transform by reprioritizing company strategies. For example, one company may focus on growth and another on profit margins.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is the Difference Between a Spin-Off and a Split-Off?",
"acceptedAnswer": {
"@type": "Answer",
"text": " A split-off is similar to a spin-off, where the parent company offers shares to existing shareholders. However, in a split-off, shareholders must choose between holding shares in the parent company or exchanging some or all of their holdings for shares in the new company.<\/span><\/p>"
}
}
]
} ] }
]