A corporate separation, creating two Fortune 200 companies, teaches you some great lessons in business and leadership.
To navigate mergers and acquisitions, you aim to mitigate increased threat actor targeting and insider concerns, drive aggressive technical integration and risk remediation plans, fuse together organizations, processes and cultures, and pursue cost savings.
To navigate divestitures, most notably major corporate separations, you manage a different set of unique challenges.
Threat actors love to pounce on organizations where significant change and confusion may exist. You have to stay vigilant, monitor for misconfiguration and exposure, and establish cooperative cross-company mutual defense agreements and incident response protocols.
To achieve financial and legal goals, companies must fully separate within an aggressive timeframe, typically within two years or less, with support defined by a formal Transitional Services Agreement (TSA).
For the former parent company (RemainCo), there’s the struggle to balance TSA-required support to provide essential security functions for the spin-off company (SpinCo) while maintaining the defense and business priorities of RemainCo.
For SpinCo, there’s the obvious dependency on the former parent, particularly early in the transition, stress and opportunity of fully staffing a great team, new infrastructure build-outs and massive application migrations, rapid decisions on what security controls and capabilities will be implemented (while modernizing technology and eliminating technical debt), constraining TSA costs, all while supporting a business that is ready to grow.
Partnership and constant communication with cross-company counterparts, forging trust and working through issues, is key. No TSA document can replace the need for strong relationships.
Most importantly, the team you bring with you and those new team members who you hire during the transition make it all happen - they are special people, carrying heavy workloads and wearing multiple hats, motivated and united by a rare opportunity.
For Constellation, we’ve completed an unprecedented separation and propelled an exciting carbon-free energy mission. Thank you to our leadership team for their confidence and sponsorship, to our legacy Exelon counterparts for their care and collaboration, to trusted advisors for their counsel, and to our amazing team that made it all happen… I serve with you in pride!
Forbes highlights the U.S. companies that could serve as “role models” for future spin-offs. Our performance and clean, reliable nuclear energy advantage earn us a spot at the very top of their list.
“With so much carbon-free electricity production capacity, especially nuclear, CEG will likely deliver good returns in the future.”
![US Spin-Offs Beat S&P 500 (Up 34% YTD)]()
US Spin-Offs Beat S&P 500 (Up 34% YTD)
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