David Dubner
Showing 1–3 of 3 transcripts.
- Goldman Sachs25 min
Breaking Free: The rise of corporate separations
David Dubner, Sharath Sharma, Allison Nathan
Driven by an elevated cost of capital and a strategic pivot toward simplification, over 30 global corporate separations were announced in 2022 as companies in sectors like pharmaceuticals and industrials seek to unlock portfolio discounts through operational focus. These transactions, typically closing within 9 to 13 months with internal leaders assuming over 80% of NewCo CEO roles, historically generate mid-single-digit outperformance against the S&P 500 within two years. By optimizing capital allocation and enabling targeted M&A, these divestitures serve as a critical mechanism for "shrinking to grow," allowing both RemainCos and NewCos to accelerate executive cycles and achieve value creation previously unattainable within diversified conglomerates.
- Goldman Sachs20 min
Changes at the Top: Spinoffs, Separations and Restructurings
Ben Snider, David Dubner, Allison Nathan
Amidst slowing U.S. growth and persistent inflation, the S&P 500 is shifting valuation focus toward high-profit-margin companies, driving a surge in corporate restructuring activities. Global spinoff volume has doubled the five-year average to over $100 billion as management teams prioritize portfolio rationalization and capital allocation efficiency. While transaction structures range from initial-step IPOs to spin-mergers, Goldman Sachs forecasts this trend will persist through 2022 as firms seek to optimize operations against sustained economic headwinds.
- Goldman Sachs13 min
A “Superbloom” in M&A and Separation Activity
Driven by post-pandemic strategic reassessments and macroeconomic tailwinds such as low interest rates and high liquidity, corporate boards are accelerating a "super bloom" of global M&A and separation activity. Clients are increasingly pursuing tax-efficient structures like reverse Morris Trusts and partial carve-outs to simplify diversified portfolios, supported by the sheer scale of enterprise value and geographic complexity facing S&P and FTSE companies. While geopolitical tensions pose potential regulatory hurdles, Goldman Sachs anticipates this trend of creative deal-making and large-scale transactions will persist in the near term.