Boyar’s Intrinsic Value Research (“Boyar”) and its predecessor companies have been publishing Asset Analysis Focus (“AAF”) since 1975. Their research has shown that corporate spinoffs provide some of the best opportunities to uncover intrinsically undervalued companies. Not only do the entities being spun off exhibit outperformance in many instances, but the parent company often significantly bests the market as well. However, not all spinoffs are created equal.

In this piece, Boyar discusses the characteristics of a potentially successful spinoff, and examines two recent transactions involving firms they previously profiled in their research service.