corporate-spin-off

Vocabulary Word

Definition

'Corporate spin-off' means a company forms a new, separate company from one part of itself. Like when a candy company decides it wants one factory to have its brand and sell its creations.

Examples in Different Contexts

Corporate spin-offs often aim to unlock value for shareholders by separating distinct business units with different growth prospects. A financial advisor might state, 'Spin-offs can provide shareholders with direct investment in high-growth areas, potentially leading to greater returns.'

Practice Scenarios

Business

Scenario:

To optimize our operations and improve focus, we're considering creating an independent brand out of our fast-food chain.

Response:

I agree. A corporate spin-off of our fast-food chain will likely enable us to focus resources and might lead to better growth.

Creative

Scenario:

Our motion graphics team has become increasingly specialized. They might benefit from a more targeted business approach.

Response:

That sounds good. A corporate spin-off could give the motion graphics team greater creative freedom and control.