Divestiture Strategy

A divestiture strategy in the context of acquisition involves a company selling off a part of its business or assets. This typically occurs after acquiring another company when the new owner decides certain divisions or brands are not a good fit or are underperforming. By divesting, the company can focus on its core strengths, improve profitability, and raise capital. Essentially, it’s a way for companies to streamline operations and ensure that resources are allocated effectively for growth and success.