Making big operational changes before spinning off assets can be daunting, but our research indicates that doing so can dramatically improve the odds of deal success.
The goal of most executives leading large spinoffs is to establish two (or more) successful and focused companies instead of just selling off noncore assets. Such transactions represent opportunities to create more value for shareholders. Since eBay spun off PayPal in 2015, for instance, PayPal has become one of the largest payments companies in the world and has been able to grow its base of active users, potentially exceeding 300 million accounts by the end of 2019—up from 169 million active accounts in 2015.1
