Difference between revisions of "Divestiture"

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:[[Divestiture]]. The sale of some of a company’s operating assets.
 
:[[Divestiture]]. The sale of some of a company’s operating assets.
 
According to the [[Strategic Management by David and David (15th edition)]],
 
According to the [[Strategic Management by David and David (15th edition)]],
:[[Diversification strategies]]. When a firm enters a new business/industry, either related and unrelated to their existing business/industry. Related diversification is when the old vs. new business value chains possesses competitively valuable cross-business strategic fits; unrelated diversification is when the old vs. new business value chains are so dissimilar that no competitively valuable cross-business relationships exist.
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:[[Divestiture]]. Selling a division or part of an organization.
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According to the [[HRBoK Guide]],
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:[[Divestiture]]. The sale of a company's asset(s). Property that an organization sells or gives to another organization (for example, a company's sale of a business unit).
  
 
==Related concepts==
 
==Related concepts==
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*[[Introduction to Financial Management]].  
 
*[[Introduction to Financial Management]].  
  
[[Category: Financial Management]][[Category: Articles]][[Category: Strategic Management]]
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[[Category: Financial Management]][[Category: Articles]][[Category: Strategic Management]][[Category: Management]]

Latest revision as of 17:35, 19 July 2020

Divestiture is the opposite of an acquisition. That is, a company sells a portion of its assets—often a whole division—to another firm or individual.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Divestiture. The opposite of an acquisition. That is, a company sells a portion of its assets—often a whole division—to another firm or individual.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Divestiture. The sale of some of a company’s operating assets.

According to the Strategic Management by David and David (15th edition),

Divestiture. Selling a division or part of an organization.

According to the HRBoK Guide,

Divestiture. The sale of a company's asset(s). Property that an organization sells or gives to another organization (for example, a company's sale of a business unit).

Related concepts

Related lectures