Divestiture
/daɪˈvɛstɪtʃʊr/noun
The act of selling off or disposing of a business, asset, or investment.
The company's divestiture of its non-core business units allowed it to focus on its main operations.
Often appears as...
- asset divestiture
- business divestiture
Usage tips
Formal
business strategy, financial decision, asset sale
Definition 1 of 3
Pro Tip 1/2Business Context
Understanding divestiture often occurs in a business context where companies respond to market changes or personal strategy.
Many corporations may favor divestiture to maintain focus on profitability.
Pro Tip 2/2Financial Strategy
Divestiture can help to raise capital or allow a company to reallocate resources to more profitable areas.
After several divestitures, the organization was able to significantly reduce its debts.
Compare with
divestmentacquisliquidatespin off
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