GDCR attorneys can lead you through the requirements of a successful spinoff. Spinoffs are a type of business separation used to streamline operations and unlock shareholder value on a tax-free basis.
A variety of structures can be used to accomplish a spinoff, but the end result is the same: a subsidiary, business division or business part is separated from the existing company by creating a new, independent, stand-alone company.
Spinoffs are used to separate unrelated businesses for market position and growth, to separate an underperforming business from a good profitable business, and for asset protection by separating the liabilities or high risk of one business from the assets of another business. Spinoffs are complicated, however, and give rise to many legal, compliance, commercial and operational issues.
We provide reorganization documents, approval steps, separation plans, security and tax compliance.