Mitchell Raab and Kenneth Silverman Publish Article in Bloomberg Law on Spin-Offs, Divestitures and Key Business and Legal Considerations

As ill-fated mergers unravel, divestitures and spins-offs can create market opportunity and shareholder value. However, if not carried out effectively to navigate legal, tax, and other complexities, such transactions can lead to further value destruction. In a Bloomberg Law article entitled “Weighing Risk and Reward When Considering Mega Merger Breakups,” Mitchell Raab, Chair, and Kenneth Silverman, Partner, in Olshan’s Corporate/Securities Law Practice Group, weigh in on the key considerations businesses must take when eyeing a breakup. Among others, these include asset division decisions; transaction structuring; required public disclosures and stock exchange approvals and notices; required approvals by shareholders, lenders and regulators (both domestically and internationally); communications planning; impacts on local and federal government and political relationships; a transition services arrangements; tax impacts; intellectual property implications; employment arrangements; and real estate decisions.