The Benefit: For Spin-off companies
Are you working in a non-core area inside a a large larger company? Or planning a spin-off?
Economic circumstances and shifts in the market increasingly drive companies to reduce activities that are no longer core to the company. Activities that used to be core to the company strategy can end up being non-core. These range from new innovations to more advanced businesses that become non-core after a strategy shift, and to mature businesses which the corporation no longer wants to pursue. These activities are shut down or slowly fade away due to lack of sufficient resourcing. This destroys value.
In many cases non-core corporate activities have significant potential as stand-alone businesses. Spinning out the non-core businesses have several benefits to the business:
- the improved focus and the management / owners attention helps drive the business
- the administrative burden of belonging to a larger company is removed
- the possible conflicting priorities that limit development potential are removed
- the often significant potential outside the scope of the company's core vertical markets is easier to capture
- the established independent company is not restricted by the previous owner's sales channel strategy, or choice/focus on specific customer segments
VersoVentures has extensive expertise and track record in company spin-offs, and may be able to help your business forward in multiple ways. VersoVentures is actively looking for investment opportunities in company spin-offs. Our interest is primarily in businesses that already have an offering and revenue, and that with proper resourcing can achieve rapid international growth.
Contact us by e-mail email@example.com or directly any member of the Team and let’s jointly review your idea and situation!