Spinco Feasibility Study

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II. Sell offs: Rationale for sell offs
Divesting a subsidiary can achieve a variety of strategic objectives:
Unlocking hidden value – Establish a public market valuation for undervalued assets and create a pure-play entity that is transparent and easier to value.
Un-diversification – Divest non-core businesses and sharpen strategic focus when direct sale to a strategic or financial buyer is either not compelling or not possible.
Institutional sponsorship – Promote ownership by sophisticated institutional investors, which tend to validate SpinCo as a standalone business.
Motivating management – Improve performance by better aligning management incentives with SpinCo 's performance (using SpinCo, rather than ParentCo, stock-based awards), creating

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