Table: An Investor's Guide to Spin-Offs
-- Seek less-publicized deals. Bargains often appear when companies distribute shares of spin-offs to existing shareholders rather than first selling a small stake through an IPO.
-- Make sure managers clearly articulate a growth plan.
-- Avoid spin-offs that the parent overloads with debt.
-- Check to see if IPO proceeds will go to the spun-off subsidiary, not just the parent company.