Sometimes, firms need to break up too

IS it time to split up?

Each week brings with it news of the latest multi-business public company looking to ignite shareholder returns by separating. Sometimes compelled by external pressure from activist investment funds, spin-offs are taking place across a range of industries. HP Inc and Hewlett-Packard Enterprise, eBay and PayPal are among recent examples, and the list keeps growing.

Corporate breakups may be in vogue, but are they worth it? Separations are costly; one-time costs typically amount to one to 2 per cent of…