Spin off? Split off? generate, someone, please, equity, result

dandman

Can someone please tell me how/why a

spin off nor split off does NOT generate cash flow to the firm?

But an equity carve out DOES result in a cash inflow?


Thanks in advance

Otabek

thanks, good stuff

ppls

equity carve out -> new company being created and this one issues shares as well.

Spin off - similar to a carve out - but no shares are issued. Shares are distributed proportionally to the Parent's company's shareholders.

Split off - Parent company shareholders are offered shares in new company after they return proportional # of shares in Parent. The parent company share holders exchange shares here.

CP