A spinoff may occur for various reasons. A company may conduct a spinoff so it can focus its resources and better manage the division that has more long-term potential.

Businesses wishing to streamline their operations often sell less productive or unrelated subsidiary businesses as spinoffs.

For example, a company might spin off one of its mature business units that are experiencing little or no growth so it can focus on a product or service with higher growth prospects.

Alternatively, if a portion of the business is headed in a different direction and has different strategic priorities from the parent company, it may be spun off so it can unlock value as an independent operation.

A company may also separate a business unit into its own entity if it has been looking for a buyer to acquire it but failed to find one.

For example, the offers to purchase the unit may be unattractive, and the parent company might realize that it can provide more value to its shareholders by spinning off that unit.

It can also offer its existing shareholders a discount to exchange their shares in the parent company for shares of the spinoff.

Spinoffs tend to increase returns for shareholders because the newly independent companies can better focus on their specific products or services.

Both the parent and the spinoff tend to perform better as a result of the spinoff transaction, with the spinoff being the greater performer. The downside of spinoffs is that their share price can be more volatile and can tend to underperform in weak markets and outperform in strong markets.

Spinoffs can also experience high selling activity; shareholders of the parent may not want the shares of the spinoff they received because it may not fit their investment criteria.

Spinoffs are a common occurrence; there are typically dozens each year in the United States. Financial Analysis. Small Business Taxes.

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Personal Finance. Your Practice. Popular Courses. What Is a Spinoff? In simple terms this would involve a legal restructuring that if necessary would allow individual parts of a group t o b e spun off s ol d or liquidated.

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The assets of Cembra, the transferor company, essentially comprises the corporate customer business spun off by Raiffeisen Zentralbank Österreich AG (​RZB). Ein Ableger bezeichnet in der Betriebswirtschaftslehre eine Abspaltung einer Geschäftseinheit aus einem Unternehmen und Unternehmensgründung mit diesem Teil zu einer eigenständigen Unternehmung. Ableger werden als eine Form des Divestments. Many translated example sentences containing "spun off from" – German-English dictionary and search engine for German translations. Many translated example sentences containing "to be spun off" – German-​English dictionary and search engine for German translations.