Splitting a company into two.
Advantages:
1. Reduces liability (in case one is more risky). My old builder has two companies, one in building and one in owning the land. In case one fails, he still has the other one.
Disadvantages:
1. Almost double the administration cost (not important for big company like Computer Science) and moving offices.
2. Reduce the synergy such as transferring knowledge learned from one company to another.
Small
investors will have to spend more time in keeping track of their tax
basis. I had a hard time when TWA split into several companies
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