Divesting

Divesting is the strategic action undertaken by a company to sell off an asset, typically a non-core business unit, as part of its corporate strategy. This process stands in direct contrast to acquisition, as it involves the reduction rather than expansion of a company’s holdings. Sometimes, divestiture is referred to as an exit strategy, particularly when a company seeks to disengage from a particular market or sector. The act of divesting can yield multiple benefits for the company, including generating an infusion of capital and optimizing their portfolio. Divesting involves several steps, as enumerated below:

1. Monitor portfolio
2. Identify buyer
3. Perform Divestiture
4. Manage Transition