ANALYSIS: Spinoffs Are Off to a Quick Start in 2023

Spinoff transactions—deals that involve the creation of independent companies through the sale or distribution of new shares of an existing line of business or an existing division of a parent company—are making news headlines and earning market favor amid the notable decrease in overall M&A activity. Despite the ongoing transactional doldrums, the number of spinoffs that have been announced so far this year is surprising, especially compared to past years’ spinoff deal counts.

Bloomberg data show that 59 spinoff transactions have been announced so far in 2023, more than in any of the last five years at the same ...