The Benefit: For Corporates
Companies continuously fine-tune their business portfolio and businesses that do not fit their strategy well enough are screened out of the portfolio. Also non-core subsidiaries or joint ventures, or non-core businesses acquired as part of M&A transactions might have better growth opportunities as an independent company. Larger non-core businesses can be sold to external buyers, but many cases are too small for corporate M&A processes, have carve-out complications, or are too early stage for the M&A market. These activities are shut down or slowly fade away due to lack of budget – this destroys value.
Many corporations are also actively utilizing Open Innovation - spinning out a project that is needed for the total offering, but where the corporation itself currently can’t invest time and resources.
Return on investmentIf the project or business is viable as a stand-alone business then there is a good possibility to benefit from the investments made by spinning the activity off. The VersoVentures model and expertise enable a fast and efficient carve-out process, with the Verso team also actively helping to structure and staff the new company as needed.
A spin-off can be a true win-win situation: the employees get a new job in their own company, and the corporation has a direct image benefit in addition to the financial return possibility. The spin-offs are actively managed by VersoVentures, with no shareholdings or assets on the corporate balance sheet, but still retaining the financial benefit with the success of the spun-out company.
For more details and an evaluation how VersoVentures could help your company, please contact us by email: email@example.com or directly any member of the Team .