Articles 2019-07-08T09:24:32-05:00

Spin-Off Insights Articles

Corporate trends, activist investor activity, new management teams, former spin-offs, and general investing commentary

Recent Articles

Spin-Off Investing Focused Articles

Overview of Spin-Off Investment Opportunities

Describe the various types of spin-off transactions, key drivers, categories, and fundamental characteristics investors need to consider.

Stock Spin-Offs Explained: Description, Rationale, Timeline, and Examples

Explores all the important aspects of a stock spin-off, including outlining the transaction, rationale behind executing a spin-off, the timeline of events and key regulatory filings, and initial listing and trading terminology.

Characteristics of Top Performing Spin-Offs (With Examples)

Have you ever wondered why some spin-offs do extraordinarily well and others do very poorly? This article investigates the key attributes of top performing spin-offs to help investors make better decisions.

Review of Historical Spin-Off Performance: The Opportunity for Active Investors

Spin-offs have historically been a very attractive area of the market for active investors. This article investigates studies from the leading academic and financial firms to shows how investors can best use this information.

Also See:

7 Reasons Why Companies Execute Spin-Offs

This article explores the top reasons why companies execute spin-offs and illustrates these reasons with examples from recent spin-offs.

Spin-Off Characteristics: The Making of Compelling Investment Opportunities

Spin-offs are a great place for investors to look for potential opportunities. This article explores some of the key characteristics that could result in a spin-off being a compelling long-term investment.

Types of Special Situation Investment Opportunities: The Pros and Cons

Describes different types of special situation investment opportunities as well as the benefits and drawbacks of these investment situations.

Spin-Off Categories

Organizing spin-offs into different categories can help investors efficiently filter through opportunities to find ones that fit their investment philosophy and mandate.

Spin-Off ETFs, Indices, and Mutual Funds: What Investors Need to Know

This article investigates spin-off ETFs, Indices, and Mutual Funds to determine how they are structured and if they make sense for investors.

Key Spin-Off Drivers

Spinning off a business usually goes against company executives’ rational self-interesting of running a larger company and getting paid more. This article explores the key spin-off drivers and major stakeholders who push for change.

Types of Spin-Offs: Traditional Spin-Off, Carve-Out, and Split-Off

In this article, we describe the three main types of spin-off transactions and how the ownership dynamics, timing, and capital raising implications could be different depending on how the transaction is structured.

All Articles

August 2019 Spin-Off Insights Monthly Newsletter

Read the PDF Report Here Monthly Spin-Off Recap: New Spin-Off Announcements None Closed Spin-Off Transactions None Upcoming Spin-Off Transactions Post Holdings: Active Nutrition (Spin-Off) Nuance Communications: Automotive [...]

September 3rd, 2019|

July 2019 Spin-Off Insights Monthly Newsletter

Read the PDF Report Here Monthly Spin-Off Recap: New Spin-Off Announcements Tenet Healthcare Corporation: Conifer (Spin-Off) Pfizer, Inc: Upjohn (Spin-Off) Closed Spin-Off Transactions None Upcoming Spin-Off Transactions [...]

August 1st, 2019|

June 2019 Spin-Off Insights Monthly Newsletter

Read the PDF Report Here Monthly Spin-Off Recap: New Spin-Off Announcements AECOM: Management Services Segment (Spin-Off) Closed Spin-Off Transactions DowDuPont: Corteva, Inc. (Spin-Off) KAR Auction Services: IAA, Inc. (Spin-Off) [...]

July 1st, 2019|

DuPont – First Merger, Then Spins, and Now the RemainCo

Introduction It is always interesting to look at companies which are undergoing or have undergone significant change. This includes corporate actions such as divestitures, split-offs, carve-outs, and spin-offs (click here to find the list of upcoming spin-offs). These events could create compelling [...]

June 19th, 2019|

May 2019 Spin-Off Insights Monthly Newsletter

Read the PDF Report Here Monthly Spin-Off Recap: New Spin-Off Announcements The Ensign Group: Pennant (Spin-Off) TiVo Corporation: Product Business (Spin-Off) Closed Spin-Off Transactions V.F. Corp: Kontoor Brands (Spin-Off) DowDuPont: [...]

June 3rd, 2019|

April 2019 Spin-Off Insights Monthly Newsletter

Read the PDF Report Here Monthly Spin-Off Recap: New Spin-Off Announcements Ingersoll-Rand: Industrial Segment (Spin-Off) Closed Spin-Off Transactions DowDuPont: Dow Inc. (Spin-Off) Novartis: Alcon (Spin-Off) Upcoming Spin-Off Transactions [...]

May 1st, 2019|

Actuant Corporation Report – A New Path Forward

Introduction: There are some industrial conglomerates that have enviable track records of creating per share value. They efficiently operate the business and shrewdly allocate capital, buying assets (including their own stock) at attractive prices and working to continually improve the overall quality [...]

February 25th, 2019|

Types of Special Situation Investment Opportunities: The Pros and Cons

Introduction Special situation opportunities are investments generally predicated on some type of event. The event could be a change in a company’s ownership profile, capital structure, or operations. In other words, a set of circumstances has disconnected the company’s valuation from [...]

February 15th, 2019|

eBay: Elliott’s New Target – Does the Thesis Check Out?

Summary: The well-known activist investment firm, Elliott Management, sent a public letter to eBay’s Board of Directors articulating their rationale for investing in eBay and their plan for improvement. eBay appears to fit the activist investor playbook of underperforming operations, valuable assets [...]

February 7th, 2019|

Spin-Offs are Reshaping America’s Industrial Conglomerates

While large industrial conglomerates have always been active in acquiring new companies and divesting legacy businesses, their tendency to focus on a select few or even just one key end market has increased in recent years. To find examples of this trend, investors [...]

December 6th, 2018|

P&G: The Largest Organizational Change in 20 Years

Introduction It's no secret that Procter & Gamble has struggled over the last few years (notwithstanding the most recent quarter). Revenue growth has been stagnant and below inflation. Profits have not faired any better with earnings more or less flat. This is [...]

November 20th, 2018|

PPG Industries: Trian’s Potential Investment Thesis

Introduction: On October 9th, Trian Partners filed an amended 13F which disclosed their newest investment, PPG Industries (PPG). Along with Sherwin-Williams (SHW) and AkzoNobel, PPG is one of the world’s largest coating companies. The shares have underperformed and traded [...]

October 15th, 2018|

A Deep Dive into GE’s New CEO

Introduction: On October 1st the board of directors replaced John Flannery as Chairman and CEO with Larry Culp. Culp had a great 25-year career at Danaher from 1990 -2014, including ~15 years as President and CEO from 2000 – 2014. During his tenure [...]

October 2nd, 2018|

Howard Hughes: A Growing NAV And An Aligned Management Team

Summary: Howard Hughes is an overlooked company that doesn't fit cleanly into a category for investors. They own unique assets, execute a low-risk business strategy, have an aligned management team, and are not reliant on dilutive capital raises to grow the business. Key project [...]

August 2nd, 2018|

Ferrari: The Long-Term Opportunity at this Former Spin-Off

Summary: Sadly, Ferrari's excellent CEO Sergio Marchionne has been replaced due to health issues. Despite Marchionne leaving, the company remains a case study in effective brand management with their low volume strategy while fostering a culture of enthusiasm, yet exclusiveness. If management can [...]

July 24th, 2018|

Allegion: An Overlooked, Wide-Moat Former Spin-Off

Summary: Allegion is a 2013 spin-off from Ingersoll-Rand that has benefited significantly from the separation. As a stand-alone company removed from their former conglomerate parent, the business has received much more attention, particularly in their international segments where margins have flipped from negative [...]

July 10th, 2018|