The Value of Divestitures

Divestitures are a great way to add value to a company that impacts both the company procuring the asset and the seller as they both restructure themselves in a variety of ways.

Although the technical definition of a divestiture is the disposal of an asset, by beginning to rethink that a divestiture is an asset and an opportunity for growth, you can reframe the idea of a divestiture as a disposal and see it as a chance to add value.

As companies grow, expanding and changing their portfolios to include or remove additional assets can help them to develop further their strengths or hone-in on them, instead of wasting time and resources on weaker areas.

The process of divestitures can help both companies to connect to their areas of success.