Divestiture

Knowledge Center

What is a Divestiture? Meaning.

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.

Forum - Divestitures   Discussions about Divestitures. 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 (...)

Resources - Divestitures Here you find powerpoint presentations, micro-learning videos and further information sources. Overview of All Forms of Corporate Restructuring Restructuring (...)

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.