New Reports
The ABCs of Branding Corporate Spin-Offs
As Neil Sedaka famously sang, “breaking up is hard to do.” It’s even harder when the breakup involves a business unit, division or other corporate asset. Although the primary benefit is creating wealth, not all spin-offs achieve that. In fact, a review of recent spin-offs reveals only half actually improved market valuation. Often overlooked is the role of branding in achieving a successful spin-off.
This issue is of growing importance. The market is at the early stages of a wave of corporate spin-offs as companies seek to improve shareholder value amid today’s economic turmoil. This includes companies as diverse as Motorola, American Airlines, InterActiveCorp, Altria, TimeWarner and Cadbury-Schweppes, all of whom are considering divesting some of their businesses.