Divestiture Strategy

The partial or full disposal of a business unit through sale, exchange, closure, or bankruptcy.

• Rationale: Slimming down to the core business, raising capital, or removing a low-performing asset.
• Types:
  • Spin-off: Creating a new independent company.
  • Equity Carve-out: Sale of minority stake via IPO.
  • Trade Sale: Sale to another corporation.