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...