Framework
Calving Prevention Checklist
TL;DR
Annual checklist to identify whether your organization is at risk of forced separation under crisis.
Annual checklist to identify whether your organization is at risk of forced separation under crisis. If multiple items are checked, controlled calving should be executed proactively.
When to Use Calving Prevention Checklist
Run annually as part of strategic planning. Also run whenever activist investors appear, key executives depart, or market valuations diverge significantly.
How to Apply
1
Run the 6-Item Checklist
Assess each risk factor for your organization.
Questions to Ask
- Has a business unit grown to >30% of company revenue but operates independently of core?
- Have 3+ senior leaders from one business unit left in past 12 months?
- Is one business unit growing 3×+ faster than core but constrained by parent governance?
- Is one business unit losing money for 3+ years with no path to profitability?
- Have activists or large investors publicly called for spinoffs/divestitures?
- Has your stock traded at 30%+ discount to sum-of-parts valuation for 2+ years?
2
Determine Urgency Based on Results
Count checked items and determine timeline for action.
Outputs
- 0-1 boxes checked: Monitor annually
- 2-3 boxes checked: Execute controlled calving within 12-24 months
- 4+ boxes checked: URGENT - Controlled calving needed within 6-12 months