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Spin‐Offs: A Way to Increase Shareholder Value

Jeffrey M. Gordon (Certified financial analyst and a vice‐president and director of Duff & Phelps Financial Consulting Co., Chicago)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 1 January 1992



Although the highly publicized mergers and acquisitions boom of the 1980s have receded dramatically, restructuring by divesting business units has become increasingly popular. In particular, corporations have found strategic and financial advantages to spinning off divisions or subsidiaries to their stockholders through transactions that are expected to qualify for advantageous tax treatment. When such transactions are motivated by sound strategic planning and are properly structured, the spin‐off can result in additional value for the company's stockholders.


Gordon, J.M. (1992), "Spin‐Offs: A Way to Increase Shareholder Value", Journal of Business Strategy, Vol. 13 No. 1, pp. 61-64.




Copyright © 1992, MCB UP Limited

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