Divestitures or divestment as it is commonly known is defined as complete or partial disposal of an asset. A company may also get rid of an asset because it is trying to streamline its operation and as a result that getting rid of any asset that is not a part of its core competency.

A partial or full disposal can happen, depending on the reason why management opted to sell or liquidate its business’ resources. Examples of divestitures include selling intellectual property rights, corporate acquisitions and mergers, and court-ordered divestments.

Divestitures are defined as the removal of one or more of a company’s lines of business via selloff or spinoff.

Divestitures are the flip side of corporate growth involving mergers and acquisitions. Divestiture involves a corporation’s sale of one or more of its constituent parts (i.e., a branch, subsidiary or facility) or some or all of its productive assets in an effort to reduce its size.

As nouns the difference between divestiture and divestment is that divestiture is the act of divesting, or something divested while divestment is the sale or other disposal of some kind of asset.

As nouns the difference between divestment and diversification. is that divestment is the sale or other disposal of some kind of asset while diversification is diversification.

One divestiture strategy involves the sale of the subsidiary or business line to another company. By selling the business or its assets, the parent can obtain capital to use to acquire another company or assets that better fit with its current strategy.

Types of Business Divestitures 1 Getting cash. A business might sell some property to solve a cash flow problem. 2 Selling subsidiaries. Some businesses have gathered up other smaller businesses as subsidiaries. 3 Selling underperforming assets. 4 Closing locations. 5 Business sale.

A partial or full disposal of a business entity through exchange, closure, sale or bankruptcy is termed as divestiture. A divestiture occurs when a management of an entity decides to stop operating a unit as it is not contributing towards profit.

What is ‘Divestment’. Divestment, also known as divestiture, is the opposite of an investment, and it is the process of selling an asset for either financial, social or political goals. Assets that can be divested include a subsidiary, business department, real estate, equipment and other property.

Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country. Divestment is also referred to as divestiture. Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country.