If Company X intends to distribute shares of its wholly owned subsidiary to its current shareholders in an effort to make the subsidiary a publicly traded company,then Company X is contemplating a(n)

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Company X is considering a spin-off, which is the process of creating a new, independent company by separating out a portion of an existing company's assets or operations. In this case, Company X intends to distribute shares of its wholly owned subsidiary to its current shareholders to make the subsidiary a publicly traded company. This is a type of spin-off known as a equity spin-off or equity carve-out. An LBO (leveraged buyout) involves the acquisition of a company using a significant amount of debt financing.

If Company X Intends to Distribute Shares of Its Wholly