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spin-off or wholly owned subsidiary?
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Wholly owned subsidiary would be a division in your company that is operated separately. You are responsible for their expenses. Likewise you can take all of their profits without repercussion. Think TATA and Jaguar. TATA owns Jaguar outright, but Jaguar operates as its own company separated from TATA.

Spinning off a marque means that company becomes an actual company separated from you. You might have voting control but other share holders can sue you for stripping the company, or diluting it. If you want to bring it back under your banner, you will have to reacquire it. Ect. However, since it is its own company, you are not liable if it fails. An example of this would be Ferrari and Fiat. (Previously Ferrari was a wholly owned subsidiary of Fiat.)


So that's pretty much it. Subsidiary = Part of your company ran by AI. Spin Off = New Company ran by AI.
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RE: spin-off or wholly owned subsidiary? - by Eric.B - 02-28-2017, 09:20 AM

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