Finicade
🔍 Sign in
Corporate Finance & M&A

Divestiture

Also called: disposal, asset sale

A divestiture is selling a business unit outright, for cash, to a strategic buyer or a sponsor. It's the cleanest exit and the fastest, which is why it's chosen when the parent needs proceeds rather than focus. Regulators also mandate divestitures as a remedy for approving a merger, which produces forced sellers and predictably keen buyers.

← All Corporate Finance & M&A terms