Divestiture

Knowledge Center

• About
• Home
• Dictionary
• Encyclopedia
• Question?
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

Description of Divestiture. Explanation.

Definition Divestiture. Description.

A Divestiture in corporate strategy is the sale, liquidation, or spin-off of a corporate division, or subsidiary. Often to focus the resources of the corporation on a market it judges to be more profitable or promising, or to increase the focus on its Core Competence. Focusing the resources of a firm on one or a few core businesses is usually better then taking diversification too far and spreading resources and overstretching the span of control of management. A divestment can also occur when required by a government agency such as the Federal Trade Commission or European Commission before a merger is approved. Finally, there are also examples of divestments for corporate responsibility reasons, such as the withdrawal of firms from South-Africa during the 1980s due to the Apartheid regime at the time.

In finance and investing, it is the disposal of an investment by sale, liquidation or other means.

A synonym for it is divestment. It is the opposite of an investment.

Divestitures Forum   Quotes on Divesting. Quotations Hi, do you know of a remarkable, humorous quote by...         Start a new topic

Divestitures Special Interest Group Special Interest Group

Best Practices - Divestitures Premium

Expert Tips - Divestitures Premium

Resources - Divestitures Premium Overview of All Forms of Corporate Restructuring Presentation that provides a comprehensive overvie... Usage (application): Restructuring     News about Divestitures         Videos about Divestitures         Presentations about Divestitures         Books about Divestitures         More about Divestitures

Compare with: Spin-Off  |  Leveraged Buy-Out  |  Management Buy-Out  |  Exit Strategy  |  Synergy  |  Parenting Advantage  |  Parenting Styles  |  Growth Phases  |  Joint Venture  |  Special Purpose Vehicle

Return to Management Hub: Change & Organization  |  Ethics & Responsibility  |  Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 

This ends our Divestiture summary and forum.