# Divestiture

*Corporate Finance & M&A — Finicade finance glossary*

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.

**Also known as:** disposal, asset sale

**Related terms:** [Spin-Off](https://finicade.com/glossary/spin-off), [Carve-Out](https://finicade.com/glossary/carve-out), [Mergers and Acquisitions (M&A)](https://finicade.com/glossary/mergers-and-acquisitions), [Activist Investor](https://finicade.com/glossary/activist-investor), [Sum-of-the-Parts Valuation](https://finicade.com/glossary/sum-of-the-parts-valuation)

Source: https://finicade.com/glossary/divestiture