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How to Know If a Spin-Off Will Succeed

Harvard Business Review

For example, after its spin-off from International Paper, Arizona Chemical drastically changed its market approach from a drive for volume to margin optimization. Does the business have an adequate financial structure? Whatever the motives, though, SBOs do enable successive waves of add-on acquisitions to the initial divested business.

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How One CEO Grows Her Business with Feeling

Harvard Business Review

While interning in Mozambique in 2005 for the one-person (!) As product is sold, some of the initial working capital that SHE puts up is paid back, with the entrepreneurs eventually owning their local franchises. In turn, SHE reinvests its profits in new geographies or other disruptive enterprises.