Spin-Off

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Description of Spin-Off. Explanation.

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Definition Spin-Off. Description.


A Spin-Off is a form of corporate divestiture, whereby a subsidiary, division or strategic business unit becomes an independent company. Normally, shares in the new organizational entity are distributed in the form of a special stock dividend to the shareholders of the parent company on a pro rata basis. However see Leveraged Buy-Out.


A frequent reason for considering a Spin-Off is that a product developed by the R&D department that does not fit in the Core Competence of the corporation, or to streamline the parent organization. A Spin-Off can also be advantageous from a strategic point of view in that two new companies can each focus on their core business. Also, from a financial point of view, the two firms may be worth more than the sum of them.


Spin-Off Forum
  Spin-off Cases and Examples
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Spin-Off Special Interest Group


Special Interest Group

 

Best Practices - Spin-Off Premium

Expert Tips - Spin-Off Premium

Resources - Spin-Off Premium

Overview of All Forms of Corporate Restructuring

Presentation that provides a comprehensive overview of the forms of restructuring that companies can use. Four groups are distinguished:
1. Expan...
Usage (application): Restructuring
 
 

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Compare with: Leveraged Buy-Out  |  Management Buy-Out  |  Divestiture  |  Exit Strategy  |  Parenting Advantage  |  Parenting Styles  |  Growth Phases  |  Joint Venture  |  Special Purpose Vehicle  |  Strategic Alliance  |  Synergy

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