Divestiture

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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 ?
For example, pressures from non-profit-oriented stakeholders may generate reputation costs to the top managers, relating to the negative public opinion on asset divesture attempts.
The cash consideration of this divesture is approximately SEK1,009m.
These were partly offset by the divesture of two Anvil businesses with net sales of USD30.
In total, this accounts for $250M-$300M in cumulative divestures inclusive of completed and pending divestitures.