Difference between revisions of "Divestiture"
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | 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. | :[[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== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Financial Management]][[Category: Articles]][[Category: Strategic Management]] |
Revision as of 22:08, 15 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),
- 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.
