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$3 trillion of spinoffs yet to be announced

Staff writer ▼ | December 22, 2014
Looking back to look forward, in 2010, the total market capitalization value of the 32 Parents that broke-up in that year was $131 billion. When combining the market cap value of all 2014's completed corporate spinoffs, it totals $664 Billion, a fivefold increase.
Huge   The Edge Consulting Group
Taking the same value of global corporate break-ups, research advisor The Edge Consulting Group's live spinoff calendar for 2015 now contains a staggering $1.2 trillion of parent companies officially announced to demerge worldwide.

Ryan Mendy, COO of The Edge Consulting Group, said: "Given four in ten don't generate any value in year one, it's going to be a very serious challenge for investors to keep up with which ones to invest in given the wave of corporations opting to spinoff than IPO.

"This is the greatest set number in history heading in to a new year. Major companies like Philips (think Siemens and Osram), Reckitt Benckiser and Unilever in Europe and eBay, Hewlett Packard and Vornado Realty Trust in the US have recently confirmed they're joining the spinoff league. As ever we will be fundamentally revealing to our partners where the real value is hidden in each company before the spinoff happens."

A study by The Edge and the global advisor Deloitte recently uncovered that during the past 15 years, ex-parent companies and spinoffs beat the S&P 500 by over 8x in the first 12 months after being separated.

"Get prepared, this is the new preferred route for corporate boards to attract shareholders due to the clear strategic growth potential of restructuring and the value it generates," stated Mendy.

Outlook: For 2015 through 2016, The Edge currently forecasts and have captured over 100 predicted spinoff targets globally from analyzing over 1,000 of the most valuable listed, multi-division companies around the world where additional valuation catalysts exist beyond the current combined value.

The market cap value for these stocks (candidates) for a potential break-up is currently over $3 Trillion.