Spin-Offs and Carve-Outs Strategy

Spin-offs and carve-outs are strategies used by companies to streamline operations and enhance value during acquisitions. A spin-off occurs when a company creates a new independent entity by separating part of its business, often to focus on core operations. A carve-out involves selling or partially divesting a subsidiary while retaining some control. Both strategies can unlock shareholder value by allowing the new entities to operate more effectively and attract investment, ultimately making each business more agile and focused on its specific goals.