Citation
A Theory of Corporate Spin-offs
TL;DR
Optimal spinoff timing depends on information asymmetry
Theoretical framework for optimal timing and structure of corporate separations. Informs the chapter's guidance on when to execute controlled calving and how to structure the separation.
Key Findings from Chemmanur & Yan (2004)
- Optimal spinoff timing depends on information asymmetry
- Structure affects value realization
- Clean separation (0% retained) often maximizes value
- Leadership readiness critical to success