307. Making buy-side carve-outs work for everyone

More than 55 percent of large spin-offs fail to deliver the expected value three years post-spin; this is true for both the parent and the new company. However, even in today’s complex macro environment, there is plenty of spin activity as companies look outside the portfolio in pursuit of more focused strategies, fit-for-purpose operating models, and optimized capital management. Join us as Jamie Koenig and Anna Mattson, co-leaders of our Global Separations Practice, discuss their recent article on the topic and step through five critical moves that help increase the odds of spin-off success. They also share a wealth of insights gleaned from several decades of deal experience, including what a new SpinCo CEO should expect.   Related Insights Beating the odds: What really matters for successful spin-offs 2026 M&A trends: Navigating a rapidly rebounding market When separating businesses, people are the key to unleashing valueSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Today’s board members face growing demands on their time. A challenging macro environment and ever-evolving business risks are increasing meeting frequency and requiring faster decision-making. For executives considering a board role, the developmental opportunity may be clear — but what does the role really involve?In this episode, McKinsey senior partner emeritus and board director, Celia Huber speaks with Christiana Smith Shi. Christiana is the former President of Nike’s direct-to-consumer division and a seasoned board member with over 14 years of service, including on the boards of Williams Sonoma and Mondelēz International. She currently serves on the boards of Columbia Sportswear and UPS, and as Chair of Habitat for Humanity. In a wide-ranging conversation, Christiana opens the boardroom door to discuss topics including the differences between not-for-profit and corporate boards, the dynamics of CEO transitions, and what drives board effectiveness. Related Insights  The Board Perspective How boards can tackle geopolitical risk The board’s role in managing emerging AI risks The AI reckoning: How boards can evolve CEO Insights: Forging stronger CEO–board partnershipsSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Buy-side carve-outs can create significant value for acquiring companies, but they can also present complex challenges. In this episode, we’re joined by Kameron Kordestani, Anna Mattson, and Rui Silva to discuss how leaders—particularly CFOs, integration managers, and CHROs—must balance financial structuring, operational planning, and people management to ensure a value-creating transition. Related insights How buyers can successfully navigate integrating a carve-out The power of goodbye: How carve-outs can unleash value Solving the carve-out conundrumSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Outperformance in private equity is no longer defined by leverage or multiple expansion; disciplined value creation will be the decisive factor in future investment success. In this episode, AD Bhatia, Robin Ligon, and Jason Phillips are joined by CVC’s John Kelleher to discuss the key shifts in today’s PE environment and share five moves firms are making in response. The path to transforming value creation requires a more disciplined playbook: structured re-diligence, holistic transformation under a dedicated transformation leadership, stronger operating-team talent, and the use of AI as a portfolio-wide accelerator. Related Insights 2026 Global Private Markets Report  How private equity is using M&A integrations to overcome headwinds Beating the odds: How private equity firms can improve exit prospects McKinsey Strategy and Corporate Finance on LinkedIn McKinsey Transformation on LinkedInSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

For CEOs, the first 100 days often get the most attention. But the final chapter of a CEO’s tenure can be just as consequential. In this episode, senior partner Carolyn Dewar speaks with Charles Lowrey, former executive chairman and CEO of Prudential Financial, about what it takes to finish strong and manage a successful leadership transition. Lowrey reflects on his unexpected path to the CEO role, the lessons he learned while leading through the pandemic, and why he began discussing succession with the board before officially taking the job. He explains how Prudential developed internal candidates, planned the handover in detail, and worked to make the market’s reaction to the transition “a huge yawn.” The conversation also explores the personal side of stepping away: preparing for life after the CEO role, avoiding the temptation to remain too involved, and finding new ways to contribute. For current and aspiring CEOs, Lowrey offers practical guidance on legacy, succession, and the discipline required to lead until the very end. Related insights A CEO For All Seasons: Mastering the Cycles of Leadership CEO Excellence: The Six Mindsets That Distinguish the Best Leaders from the Rest The Strategic CEO LinkedIn newsletter Sending it forward: Successfully transitioning out of the CEO roleSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

As millions of baby boomer business owners in the United States approach retirement, the country faces a major transition in business ownership. Over the next decade, millions of small and midsize businesses could be sold, transferred, or closed, with major implications for local economies, jobs, family wealth, and economic mobility. In this episode, we hear from partner Ken Yearwood and associate partner Nick Noel about the wave of business transfers on the horizon, the scale of the opportunity, and the risks of avoidable closures. They discuss what this transition could mean for buyers, sellers, private capital, employees, and rural communities, and explore how a broader and more inclusive ownership ecosystem could unlock long-term value. Related insights The Great Ownership Transfer: A new era of business stewardship McKinsey Institute for Economic MobilitySupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

In this episode, we explore how finance leaders can harness AI to drive performance and create value for the organization. Our guests—Kevin Carmody, Davide Grande, and Andrea Tricoli—share insights from their research, highlighting how AI is reshaping finance functions across strategic planning, cost management, risk mitigation, and investor relations. Join us as we delve into real-world examples of AI in action and consider the evolving role of the CFO as a strategic partner in the C-Suite.    Related insights How finance teams are putting AI to work today Gen AI: A guide for CFOs Gen AI in corporate functions: Looking beyond efficiency gains Spendscape by McKinsey: Next-level spend analytics software powered by AI  Support the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Private equity firms have long outperformed their peers—not just through financial engineering, but by building better businesses faster. In this episode, senior partner Sacha Ghai and partner Marla Capozzi discuss what leaders across sectors can learn from the highest-performing private equity CEOs. Drawing on their recent Harvard Business Review article, Sacha and Marla unpack the concept of CEO alpha: the value created when CEOs outperform as individual leaders, team builders, and operators. They explain why private equity’s edge has shifted from financial engineering to building stronger, more resilient businesses, and they share six practices that distinguish top-performing PE CEOs.   Related insights What Every Company Can Learn from Private Equity CEO alpha: A new approach to generating private equity outperformance CEO Excellence: The six mindsets that distinguish the best leaders from the rest A CEO for All Seasons: Mastering the Cycles of Leadership The Strategic CEOSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Generative AI is reshaping the way investors evaluate opportunities and replacing much of the manual work involved in completing an outside-in diligence. Firms that adapt the fastest during this transition have the most to gain. To discuss how the deployment of gen AI in diligence can give organizations an investment edge and explore the shift from traditional diligence to AI-enabled, outside-in analysis we’re joined by David Pralong, a senior partner and the global leader of our Transformation Practice,  William Bundy, a partner in our Washington D.C office, Chase Covington, a partner based in our New York office, and Laura Borton, a consultant also based in our New York office. Related Insights From potential to performance: Using gen AI to conduct outside-in diligence Creating Value in Portfolio Company Operations: A Practical Guide to Growing Cash Flow in Business Wave: Your path to unprecedented performance McKinsey insights on transformation McKinsey insights on Strategy and Corporate Finance McKinsey Transformation on LinkedIn McKinsey Strategy and Corporate Finance on LinkedInSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information

Generative and agentic AI are moving rapidly from experimentation to enterprise-wide transformation—but many CEOs are still grappling with what this really means for their business. In this episode, McKinsey experts Tanguy Catlin, Sandra Durth, Lari Hämäläinen, and Antoine Montard examine why AI is being viewed as a true general-purpose technology, on par with past breakthroughs like electricity and the internet, and what that implies for competition, investment, and long-term value creation. We discuss the importance of thinking across strategy, technology, and organization to maximize the value from AI—and why focusing on productivity alone may not be enough to win. We also unpack the practical challenges leaders face and how to address them including redesigning workflows and operating models, managing large-scale workforce transitions, and building the skills and organizational capabilities needed to capture AI’s full potential. Related insights  The agentic AI opportunity Building the foundations for agentic AI at scale Seizing the agentic AI advantage A Century of Plenty New MIT Sloan research suggests that AI is more likely to complement, not replace, human workersSupport the show: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance/See www.mckinsey.com/privacy-policy for privacy information