A corporate spin-out isn’t just a financial restructuring exercise – it’s an existential one. Who are you now? Who do you want to be? And most importantly, why should anyone care?
When companies separate, everyone talks about operations, finance, supply chains and shareholder returns. But what’s often overlooked is something even more fundamental: identity.
In a spin-out, the company is suddenly untethered. The parent brand, with all its recognition and goodwill, is gone. The security blanket is pulled away. The challenge is stark: build a brand that commands attention, creates confidence and establishes credibility. Those that get it right thrive. Those that don’t fade into irrelevance.
Spin-outs that nailed it
Look at VICI Properties, which was spun out of Caesars Entertainment in 2017. Caesars, the grand old master of gaming, had its fingers in many pies – casinos, hotels, spas restaurants, retail stores, stadiums, golf courses and racetracks. The new VICI brand had to nod to its heritage while being distinct and compelling, something that would command the trust of big investors from the outset. It succeeded by diverting the focus from gaming and zeroing in on the broader potential of experiential property. By positioning as the leader in a new category – experiential real estate – they achieved a record setting $1.4 billion IPO and growth to over $30.8 billion market cap within 5 years.
Then there’s Sylvamo, which separated from International Paper in 2021. A flat-sheet paper company in a declining market could have faced significant challenges. However, Sylvamo differentiated itself by positioning as the global industry consolidator and boldly declaring itself “The World’s Paper Company,” and its stock has soared.
What these companies got right
They understood that brand strategy isn’t window dressing. It’s not about marketing slogans. It’s about staking out a leadership position and fanatical focus on narrative and perception.
1. They own a narrative
Spinouts can’t just say, “We used to be part of X, and now we’re not.” That’s not a brand. That’s an administrative update. The winners define their own space, on their own terms.
2. They differentiate with precision
In competitive markets, just existing isn’t enough. You must stand for something distinct, something people can really embrace. When MN8 Energy spun out of Goldman Sachs it coined the category Enterprise Renewable Energy to cement its position as a leading provider of renewable energy solutions for enterprise customers. Added to this MN8 challenged corporations to decarbonize and take control of their energy futures with the assertion: “You Got Power”.
3. They reassure stakeholders
Customers, employees and investors need confidence in the new entity. A strong brand provides continuity and credibility. For the once lifelong employees of International Paper, Sylvamo created a powerful culture around the passion for paper. VICI references Roman triumphalism; partnered with a rallying cry to “Invest in the Experience”, this quickly garnered investor confidence.
Give your brand consultants a place at the deal table
Spin-outs are seismic events. They shake up industries, rattle employees, and unsettle customers. And in that turbulence, brand is the anchor. It gives direction. It shapes perception. It creates value.
Yet too many companies treat branding as a late-stage activity – something to deal with after the legal and financial work is done. That’s a mistake. The brand strategy should be in place before the spin-out happens, influencing decisions from day one.
Because here’s the truth: a spin-out without a brand is just an orphan. A spin-out with a brand? That’s a business with a future.
For more information on the work above, see our case studies: VICI, Sylvamo and MN8.
