Inside the Strategy Room 264. Creating value through separations
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Aug 14, 2025 Jamie Koenig and Anna Mattsson, both partners at McKinsey, dive deep into the art of corporate separations and spin-offs. They explore the critical role of divestitures in enhancing shareholder value, discussing six types and key trends. The duo emphasizes the emotional complexities of separating from integral corporate assets and the importance of a compelling equity story to gain investor trust. They also highlight the significance of speed and effective negotiation in managing talent and long-term agreements during these transitions, ultimately showcasing how separations can unlock substantial value.
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Craft A Compelling Change Story
- Do build a clear change story that explains the spin's purpose and opportunities to employees early.
- Use the story to convert separation anxiety into motivation and to highlight new roles and career pathways.
Equity Story Needs Proof Points
- Equity stories are critical and often require revision because investors need proof points for the new company thesis.
- Successful separators show early evidence of how revenue and margin levers will be pulled post-separation.
Amicable Divorces Turn Contentious
- Anna quips separations are 'like amicable divorces until we start fighting about the family silver.'
- She warns sellers who take a 'sell and forget' stance often leave value on the table during disputes over entanglement and TSAs.