THE FINANCE GHOST: Yum, and the art of the spin-off

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The unbundling of Yum! brands from Pepsico in 1997 is a great example of two good companies doing better apart. The same may well be true of the JSE’s Zeda

Having recently researched Yum! Brands , I was reminded how well a spin-off can work out. In this situation a listed company has incubated a business until it’s ready to stand on its own feet as a separately listed group with its own management team and, perhaps most importantly, its own balance sheet.

The distinction between management and balance sheet cannot be stressed enough, as one is a much bigger consideration than the other. It’s a lot simpler to replace an underperforming management team than it is to fix a broken balance sheet...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

 

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THE FINANCE GHOST: Yum, and the art of the spin-offThe unbundling of Yum! brands from Pepsico in 1997 is a great example of two good companies doing better apart. The same may well be true of the JSE’s Zeda
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