Corporate Spin-offs

The business spin off is a form of business creation consisting of a company being born from another that has already been in operation for a long time. Initially, the new company functions as a subsidiary of the parent company until it achieves the necessary means, organization and size to function autonomously and independently.

Many companies founder trying to launch new products or services and even fail in their digital transformation process. It is there where the Spin-offs become key in the survival of the company into the future.

The advantages of Spin-off creation are shown below:

• The new company enjoys greater speed and lightness to move faster
• A Spin-off allows to increase the degree of diversification of the company
• Allows to retain the talent of valuable employees who are attracted by new projects
• The company can enter new markets in innovative and more efficient ways
• Higher level of experimentation and risk tolerance for new products and services

Some successful examples of Spin-offs

Waymo is a Startup that was born within Alphabet, Google's parent company. This is a clear example of a Spin-Off that has become one of the heavyweights in the entrepreneurial ecosystem in Silicon Valley and in the autonomous vehicle industry.