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 ?
The acquiring firm has the capacity to absorb the clients identified 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.
That's why a successful divestiture requires that the company define its goals, measure its progress against those goals and be flexible enough to adjust to changing conditions throughout the process.
Chapter 13 is a brief description of the new economic policy, features of the divestiture policy, reaction to the divestiture policy and implementation of divestiture.
BB&T has committed to execute, before consummation of the proposal, a sales agreement for the proposed divestiture with a purchaser determined by the Board to be competitively suitable, and to complete the divestiture within 180 days of consummation of the proposal.
After the proposed merger and divestiture, Chittenden would remain the third largest of seven depository institutions in the market, controlling deposits of $102.
Shilkret said that while the branch divestitures are required by the Department of Justice and state Attorney General's Office to eliminate antitrust concerns, Wells plans additional branch closures to cut costs.
Shield Corporate Finance, the international divestiture specialists, served as financial advisor to UCI on the transaction.
The divestiture of PEG will also enable Magnetek to reduce selling, general and administrative expense (SG&A) and interest expense substantially, resulting in positive operating profit and cash flow.
5 million (representing compensation for loss of opportunities and expenses incurred in connection with their discussions) if, under certain circumstances, discussions regarding the proposed divestiture are terminated without execution of definitive agreements.
Nasdaq:DRRA), today announced that it has completed the divestiture of DURA Automotive Systems KEhler GmbH, based in Lippstadt, Germany, to an entity controlled by HANNOVER Finanz Group, headquartered in Hanover, Germany.