Divestiture

Divestiture refers to the process of selling off a part of a company, such as a subsidiary or a business unit. Companies may choose to divest for various reasons, including focusing on core operations, raising capital, or complying with regulatory requirements. This action can improve efficiency and allow the company to concentrate on areas where it has the most expertise or competitive advantage. Ultimately, divestiture can help a company enhance its overall performance and shareholder value by shedding non-essential assets.