today have three or more large segments with revenue > $500mm, driven in part by a decade of mega-merger activity and portfolio diversification born out of a “bigger is better” philosophy following the financial crisis. As a result, businesses have grown increasingly complex.
2/3 of the S&P 500
global separations announced in 2022, of which Industrials and Healthcare companies represented 50%.
30+
On average, corporate separations lead to:
6%
The onset of the pandemic and ensuing market uncertainty, coupled with challenging operating and competitive conditions, forced companies to rethink their priorities.
2020
of announcements have a positive market reaction, indicating that markets understand corporate separations.
70%+
4.7%
of RemainCos seeing a reduction of SG&A cost over two years post separation
67%
increase in revenue growth for NewCos
excess blended shareholder return over two years post-close observed on average
67%
On average, corporate separations lead to: