Divestiture

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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),

Divestiture. Selling a division or part of an organization.

Related concepts

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