Companies that successfully execute win-win spin-offs will optimise the operating model for both companies.
For example, companies use the opportunity to increase their marketing expenditures or digitising the sales process. Others would attempt to improve, centralise, or simplify the operating structures before day one.
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A corporate spin-off can set a parent company free from capital and bureaucratic constraints so that it can pursue alternative strategies.
Four factors are critical for creating successful spin-offs:
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