Citation
Restructuring Through Spinoffs
TL;DR
Spinoffs outperform market by 30%+ over 3 years
Provides evidence that spinoffs outperform the market by 30%+ over 3 years. Supports the chapter's thesis that controlled calving creates value when executed properly.
Key Findings from Cusatis & al. (1993)
- Spinoffs outperform market by 30%+ over 3 years
- Both parent and spun-off entity typically benefit
- Value creation comes from increased focus and transparency
- Market rewards strategic separation