Breaking up—at least when it comes to companies—might not be a hard thing to do. That’s the gist after the recent wave of announced corporate spin-offs and splits. After the last year or so, more and more firms are looking to separate themselves into several different companies. And it’s not just one industry. Industrials, healthcare, and even tech have undergone the split-up mentality.
We might finally be seeing the end of the conglomerate business model.
The question is whether or not that’s a good thing for investors over the long haul. With separated firms, we have new risks, smaller sizes, and different dividend profiles. Does this actually translate into success for investors?
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