Spin-off, or privatization, means that (part of) the assets of a legal entity are placed in two or more other legal entities. In this process, part of the assets of the spun-off legal entity comes into the hands of another legal entity.

An example is when a company spins off a division and places it in a newly established company, often together with an investor. This process is often used to focus on core activities or to create value by making individual parts of a company independent.