NEW YORK, April 1, 2015 /PRNewswire/ -- Spinoffs
are the hidden-value that everyone wants to get hold of, right? The
real fact is that 40% of newly listed names are either flat or
produce a negative return for the first year. So what's all the
fuss about? With over 100 due in the next year, the truth lies
within looking beyond the fallacy of the event and analysing the
numbers.
In their recent 15 year study, renowned break-up advisors The
Edge Consulting Group and Deloitte reveal that value creation can
be broken down into geography, market cap, sector, performance and
importantly 'timing' of a breakup situation. The problem with many
investors today is they feel the gold can be found in identifying a
trend and jumping on the back of it without doing any real
work.
The global spinoff study also indicates 3 in 10
Spinoffs are acquired at or around two years post Spinoff. The
Edge has recently highlighted 5 'Spinoffs Names Ripe for a
Takeover' using qualitative and quantitative analysis to
present to their institutional clients.
With the environment for M&A increasing as companies become
more cash rich and interest rates remain low, Jim Osman, CEO from
The Edge comments, "We are on the verge on an M&A boom in
the macro cycle and niche businesses such as Spinoffs are prime
targets. We aim to provide our clients with as many thought
provoking ideas as possible to enable them to make superior returns
over and above the market's performance".
If you missed benefiting from the Kraft &
Heinz merger last week, The Edge's next top selections from
the last two years of analysis which include three US names from
the consumer sectors, one US large cap company from the industrial
sector and one European mid-cap name servicing Apple in the
specialty chemicals and materials sector.
The Edge is an independent research firm concentrated on
partnering with clients and aiding their research needs in the
areas of international corporate breakups and bottom-up fundamental
special situations with catalysts; such as activism, mergers,
discounted rights issues and takeovers, and are regulated by the
Financial Conduct Authority.
If interested in seeing their research or learning more about
the cost of subscribing; simply enquire at
www.edgecgroup.com/#contact.
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SOURCE The Edge Consulting Group