Spin-Off, Split-Off, Split-Up, and Carve-Out | What is the difference?

In this video, we will discuss what is various corporate events and their differences, for example:
1. What is a corporate spin-off and how does it affect my cost basis?
2. What is a corporate split-off and how does it differ from a spin-off?
3. What is a corporate split-up and how it it different from a spin-off and split-off.
4. What is a carve-out.
5. Will the government break up Google, Facebook, and Amazon by forcing them to split-up?
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DISCLAIMER: THIS VIDEO IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS TAX, FINANCIAL, OR LEGAL ADVICE. EVERY PERSON’S SITUATION IS DIFFERENT AND YOU SHOULD CONSULT WITH YOUR OWN FINANCIAL AND TAX ADVISOR FOR ADVICE SPECIFIC TO YOUR SITUATION. COMMENTS ARE NOT REVIEWED

[@ACapReCap]

ACap will not respond to comments seeking tax or financial advice. Please consult a CPA or CFP who is familiar with your individual circumstances.

[@nathaniamatram734]

thank you for the clear explanation. saved a lot of my time!

[@ACapReCap]

Thank you. I"m glad you found it helpful.

[@18gnpg33]

Thank you! It cleared things up!

[@lingshuangzhang362]

Thank you so much for the concrete examples !

[@ACapReCap]

Thank you!

[@muskaanahuja6855]

Understood split-off and spin-off only because of you...thank you

[@ACapReCap]

Thank you so much!

[@vicb3903]

Well done on the well-articulated and easy to understand explanation!

[@ACapReCap]

Thank you for watching and commenting.

[@gaparocha8546]

One of the best explanations I have heard in a long time, thanks !

[@ACapReCap]

Glad it was helpful!

[@eshabchowdhury]

Thanks for the explanation

[@mukulgautam2816]

Thank you sir.
You have explained it so nicely that I am much more clear with these terms.

[@ACapReCap]

Thank you. I am very happy to hear that!

[@dunggiapthithuy3989]

Thank you. Such a worthy explaination!

[@ACapReCap]

Glad it was helpful!

[@alitahsili]

Thank you so much

[@pliniohonorato20]

Thank you so much.

[@ACapReCap]

Thank you for watching.

[@basitmustapa8936]

thank you sir, your explaination made me really understand !

[@ACapReCap]

My pleasure.

[@shashwatsharma4752]

Thanks a lot. Very helpful.

[@ACapReCap]

You are welcome!

[@Kotees2011]

Thank you, very simple and clear explanations ! What about carve-in ? What are the operational challenges on a carve-in project ? 🙏🏾

[@ACapReCap]

Thank you for your comment. I am not familiar with a carve-in. I suspect a carve-in would be the same as an acquisition.

[@dumaoctavian8523]

So, in the case of a split-off, basically, a company takes out one of their divisions and it becomes a separate entity, right? But unlike spin-offs, you don't just automatically get shares from B just from owning A. But on that line of thot, the value of A will be lowered, because it takes out all the assets from company B from their balance sheet. I get it that in the case of split-offs you, as a shareholder basically break even. But don't you lose value in the case of split-offs?

[@ACapReCap]

Thank you for your comment. That is correct. In fact, the main motivation for the split-off is that the split off company has a higher growth rate than the parent thereby creating more shareholder value.

[@Alsacecahya]

Thanks, for the explanation, can we also get some information what is required and fundamental process when we have to spin off our people?

[@ACapReCap]

hello, that is a question for your HR department and/or labor attorney

[@Alsacecahya]

@@ACapReCap that is spesifically question for HR department.

[@Bess2k2]

Im here thanks to ATT & Warner lol

[@ianreinhart256]

Pardon, I don't really get on why spin-offs is not better than split-offs. In spin-offs, I understand that it will be a break-even for the investors, but how is it the same for split-offs? If the concepts of spin-off and split-off are both taking assets from the parent company to create a new company, then the value of the parent company should also decrease, both in the case of a spin-off and a split-off. Using ur example, if I own all eBay shares, then in split-offs scenario, I have to "sacrifice" 1/3 of my eBay stocks to get all of the paypal stocks, and the value of my total stocks is $300 mil while in the spin-offs scenario, I get paypal stocks for free and the value of my total stocks is $400 mil. Please enlighten me 🙏