Divestiture

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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 a famous person or a proverb related to (corporate) divesting? Please enter a reaction to share it for other people to enjoy! Please use this template: Author Name Year of Birth - Year of Death...         Begin a new topic

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Resources - Divestitures Premium Overview of All Forms of Corporate Restructuring Presentation that provides a comprehensive overview of the forms of restructuring that companies can use. Four groups are distinguished: 1. Expan... Usage (application): Restructuring     News Divestitures         Videos Divestitures         Presentations Divestitures         More 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

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