Search Dictionary

Definition of 'Divestiture'

Divestiture is the process of selling or otherwise disposing of a business or a division of a business. It can be done for a variety of reasons, such as to raise cash, to focus on the core business, or to exit a market that is no longer profitable.

There are a few different ways to divest a business. One way is to sell it to another company. Another way is to spin it off into a separate company that is then publicly traded. A third way is to liquidate the business, which means selling off all of its assets and closing it down.

The decision of whether or not to divest a business is a complex one. There are a number of factors that need to be considered, such as the financial impact of the divestiture, the impact on employees, and the impact on the company's reputation.

If a company decides to divest a business, there are a number of steps that need to be taken. First, the company will need to find a buyer for the business. This can be a difficult process, as there are a number of factors that buyers will consider, such as the price of the business, the financial health of the business, and the future prospects of the business.

Once a buyer has been found, the company will need to negotiate the terms of the sale. This includes the price of the business, the payment terms, and the conditions of the sale.

Once the terms of the sale have been agreed upon, the company will need to close the deal. This involves transferring the ownership of the business to the buyer and completing all of the necessary paperwork.

Divestiture can be a complex and time-consuming process, but it can also be a valuable tool for companies that are looking to improve their financial performance or to focus on their core business.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.