{"id":4088,"date":"2023-03-09T03:43:21","date_gmt":"2023-03-09T03:43:21","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/divestiture\/"},"modified":"2023-03-09T03:43:21","modified_gmt":"2023-03-09T03:43:21","slug":"divestiture","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/divestiture\/","title":{"rendered":"Divestiture"},"content":{"rendered":"<p>\nDivestiture is defined as a complete or partial disposal of a business\/firm by means of sale, exchange, bankruptcy or business closure. A divestiture decision is generally arrived at by the Board or management to stop business operations.<\/p>\n<h2>Reasons for Divestiture<\/h2>\n<p>Reasons for Divestiture are:<br \/>\n1. The business to be divested is not part of its core competency or focus area.<br \/>\n2. The business is no longer feasible due to a merger or  acquisition.<br \/>\n3. The business is up for sale and disposal of one of its non-core operations enhances its market value.<br \/>\n4. A court has ordered winding up of the business.<\/p>\n<h2>Benefits of Divestiture<\/h2>\n<p>Benefits of Divestiture are:<br \/>\n1. Divested companies may be spun off into new business(es).<br \/>\n2. Governments may divest partly or majorly, their stake, also called privatization, to raise money or to give the private sector the chance to run its operations.<br \/>\n3. Divestiture can help companies to reduce costs, repay outstanding debt, streamline operations and focus on the main business.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Divestiture is defined as a complete or partial disposal of a business\/firm by means of sale, exchange, bankruptcy or business closure. A divestiture decision is generally arrived at by the Board or management to stop business operations. Reasons for Divestiture Reasons for Divestiture are: 1. The business to be divested is not part of its [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-4088","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4088"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4088\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}