Split-Off

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Split-Off

The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the shareholders of the parent corporation in exchange for a portion of their parent stock.

A split-off differs from a spin-off in that the shareholders in a split-off must relinquish their shares of stock in the parent corporation in order to receive shares of the subsidiary corporation whereas the shareholders in a spin-off need not do so.

References in periodicals archive ?
Note: All Currency is in US Dollars; Rankings exclude splitoffs and open market repurchases.
Because the S corporation is the vehicle of choice for many small businesses, it is only natural that there is more activity currently in the area of splitoffs, acquisitions and other restructurings.
Barr is a tax lawyer advising clients on federal income tax matters, including mergers, acquisitions, spinoffs, splitoffs, private equity investments and financial products.