A divestiture is the partial or full disposal of a business unit through sale, exchange, closure or
bankruptcy. A divestiture most commonly results from a management decision to cease operating a business unit because it is not part of a
core competency. However, it may also occur if a business unit is deemed to be redundant after a
merger or acquisition, if the disposal of a unit increases the resale value of the firm, or if a court requires the sale of a business unit to improve market competition.
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Divestiture Definition | Investopedia
What is a 'Divestiture'
<span>A divestiture is the partial or full disposal of a business unit through sale, exchange, closure or bankruptcy. A divestiture most commonly results from a management decision to cease operating a business unit because it is not part of a core competency. However, it may also occur if a business unit is deemed to be redundant after a merger or acquisition, if the disposal of a unit increases the resale value of the firm, or if a court requires the sale of a business unit to improve market competition.
BREAKING DOWN 'Divestiture'
A divestiture, in its simplest form, is the disposition or sale of an asset by a company. Divestitures are essentially a Summary
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