Spin-offs are an attractive option for a public company looking to rationalize its portfolio and unlock shareholder value. They are tax-efficient, do not depend on a pool of willing buyers or a strong IPO market, and allow a high degree of flexibility in defining the scope and terms of the separation. At the same time, they are monster transactions that play out over a long timeline, all under strict tax rules that impact every step of the process.

Here is what every general counsel should know when their Board starts talking about a spin-off.