Divestiture
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),
- 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.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
