The process of executing a spin-off typically involves several steps:
1. Announcement: The parent company publicly announces its intention to spin off a portion of its business. 2. Regulatory Approval: Depending on the jurisdiction and industry, the spin-off may require approval from regulatory bodies. 3. Distribution of Shares: Shareholders of the parent company are usually given shares in the new entity in proportion to their existing holdings. 4. Operational Separation: The parent company and the new entity separate their operations, including assets, liabilities, and employees. 5. Independent Listing: The new entity may become publicly traded on a stock exchange, allowing for independent valuation and trading.