In this paper we explore spin-off formation processes in the context of an adverse corporate event. While it is accepted that spin-off formation plays an important role in perpetuating industry evolution, we demonstrate that spin-offs resulting from adverse events do not fit into the existing typologies of spin-offs as suggested by Buensdorf and Klepper (2009) and Klepper and Thompson (2010). We argue that existing typologies should recognize what we refer to as “opportunistic spin-offs”, spin-offs that occur in the wake of an adverse event but that from the perspective of the founder, the adverse event has created an unexpected opportunity to engage in entrepreneurship.