David Dubner, a global head of M&A structuring at Goldman Sachs, discusses the growth in corporate separations amid rising interest rates. They explore notable deals, equity consideration, and valuation gaps in the M&A market. The reasons behind the increase in spin-off activity in certain sectors and the significance of spin-offs in the TMT sector are also discussed. The performance of parent companies and spinoff transactions is measured using a two-year measurement period. The expectations and trends surrounding spin-offs and corporate simplification, including the role of private credit in M&A, are explored.
