top of page

Divestiture

CATEGORY

Accounting and Audit

Definition

Divestiture is the strategic process of selling, liquidating, or otherwise disposing of assets, business units, or subsidiaries by a company to streamline operations, optimize resources, or exit non-core or underperforming businesses. Divestiture transactions may involve selling off divisions, brands, real estate, or investment portfolios to raise capital, reduce debt, improve profitability, or focus on core strengths and strategic priorities. Divestiture allows companies to reallocate resources, unlock value, and reshape their business portfolios to enhance shareholder value and competitiveness.

Our trending searches definitions

APEC Business Travel Cards

The APEC Business Travel Card (ABTC) is a travel document that facilitates easier and faster entry for business travelers into APEC member economies. It provides cardholders with expedited immigration processing and visa-free entry into participating countries.

Private Limited Company (Ltd)

A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.

Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.

bottom of page