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How to Know If a Spin-Off Will Succeed

Harvard Business Review

A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently. Conversely, the business may be an “unpolished diamond” that was neglected by its former management for too long and whose value is just waiting to be unlocked. and the competitive intensity of its industry.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Two companies transfer selected similar assets into a joint venture in order to support the orderly management of capacity in their industry and reduce the risk of prices spiraling downward. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.