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Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

corporate divestiture

Corporate divestiture is a strategy to remove some of a group’s assets under its current business portfolio. Depending on the purpose of restructuring, divestitures can take several forms, such as sell-offs, spin-offs, or equity carve-out. The term corporate divestiture is usually interchangeable with that of corporate divestment.

One of the most common reasons for divestiture is removing underperforming business units. This should help reduce operating losses and achieve higher organisational...