How a Mega Co. Can Join in on Tax-Cutting Deals: Real M&A

American conglomerates that want a piece of the tax-inversion deal bonanza may start turning to a new tactic. Call it the “spinversion.”

A large diverse company could spin off a portion of its business and reincorporate that piece by combining it with an overseas entity. Shareholders get the benefits of lower tax bills for that separated unit, and corporate giants such as Johnson & Johnson and Danaher Corp. wouldn’t have to undertake a massive acquisition or face the political fallout that can come from completely skirting U.S. taxes, Albert Fried & Co. said.