Research: Few Corporate Spinoffs Deliver ValueLarge companies routinely spin off existing units to become public companies of their own, in an attempt to focus management attention and capture larger multiples in equity markets. An analysis of 350 large spinoffs from 2000 to 2020 reveals the average one creates negligible value. A study of the best-performing separations concludes that to succeed, leaders must create a compelling separation thesis, one that consists of four parts: an equity story, target financials, an asset perimeter, and program design.
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