Spin-offs and Spin-outs

Spin-offs and spin-outs are strategies used by large companies to create new, independent businesses. A **spin-off** occurs when a company creates a new entity from an existing part of its operations, offering shares of the new company to its current shareholders. A **spin-out**, on the other hand, involves the creation of a new company that may be partially funded or supported by the parent company but operates independently. Both methods allow for innovation and management focus on specific products or markets, while the parent company can streamline its operations and enhance shareholder value.