Divestiture


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Divestiture

A complete asset or investment disposal such as outright sale or liquidation.

Divestiture

The removal of assets from a person or firm's balance sheet through sale, exchange, closure, bankruptcy, or some other means. Divestiture may occur when a person or company has acquired more than he/she/it can properly administer. This sort of divestiture may occur slowly; for example, a corporation may slowly sell subsidiaries to concentrate exclusively on its core competence. On the other hand, divestiture may occur because a person or company has become cash poor and needs to build liquidity very quickly.

divestiture

The sale, liquidation, or spinoff of a division or subsidiary. For example, a firm may decide to divest itself of a division in order to concentrate its managerial efforts on more promising segments of its business.
References in periodicals archive ?
According to the financing hypothesis, companies can use divestiture proceeds to repay shareholders via share repurchase and/ or dividends, repay creditors by servicing debt and retain the proceeds for future investment opportunities.
Clear criteria that can be easily communicated to both clients and the new CPA as to why a particular client was chosen for divestiture.
The Board's approval is specifically conditioned on compliance by BB&T with all commitments made in connection with the proposal, including the divestiture commitments discussed in the order.
When survey participants were asked to what degree various activities in the divestiture process presented an opportunity for financial or strategic advantage, four steps were ranked highest: negotiation, due diligence, identifying potential buyers and valuation.
Chapter 8 reviews the Chilean divestiture experience in the last two decades.
Adjusting for the larger than originally planned divestitures, the pro forma proved reserves of the new Anadarko will be about 2.
The Board's approval is specifically conditioned on compliance by BB&T with all the commitments made in connection with the proposal and with the conditions stated or referred to in this order, including BB&T's divestiture commitments.
It's going to take an act of God to bring the two sides close enough on a divestiture plan to save this one.
AT&T played a part in this study because we have obviously experienced major changes in finance since divestiture.
Divestiture Furthers Focus on Core Business Development
On consummation of the proposed merger and divestiture, Chittenden would become the largest depository institution in the market, controlling deposits of $227.
54 billion divestiture was more than twice what Wells Fargo expected regulators to require.